AMC Previously Held Talks To Acquire Certain Cineworld Assets
AMC Entertainment (NYSE: AMC, APE) this morning indicated within a filing that it had previously held talks to potentially acquire certain Cineworld assets. The assets were to be acquired via the Chapter 11 process that is currently being undertaken by Cineworld.
The company indicated that the discussion centered around the acquisition of certain strategic theatre assets found in both the US and Europe, although no deal ultimately came to fruition, with talks said to be no longer ongoing.
The proposed acquisition was set to be financed via the issuance of APE shares, the firms publicly-traded preferred equity units, as well as debt financing provided by the lenders. As part of the deal, the debt was to be conditioned upon a liability management exercise. No definitive agreement is said to have been entered with the lenders associated with the discussions, with negotiations again said to not be continuing.
The notification as a whole was reportedly provided by the company as a result of a non-disclosure agreement entered into with certain lenders of Cineworld.
Cineworld filed for bankruptcy in early September following failed rescue talks held in August. At the time of the filing, AMC CEO Adam Aron praised the support it had received from investors, which put the firm in a much stronger financial position than its peers.
AMC Entertainment last traded at $5.08 on the NYSE.
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