$AMC and other meme stocks return to higher levels as equity markets recover. Risk assets move higher as retail returns with earnings season steady. AMC stock set for more gains as Bitcoin signals retail risk is back on by ivanbrian9 stocks trading
AMC prepaid some long-term debt at a nice discount. sounds good, but let us dig a little deeper. AMC has a truck load of debt. That is why we remain so negative on the long term time horizon. This $72.5 million repayment is a drop in the ocean of its $10 billion debt pile. Yes, that reads $10 billion. $5.5 billion in direct long term debt via bonds and loans and $4.5 billion of deferred lease obligations. This amount represents less than 1% of debt outstanding.
The long-term view remains challenging. There is a huge debt pile, and AMC will struggle to repay it. Chances of Chapter 11 are high in our view over the next two years. Senior bondholders will get to rummage through the carcass, subordinated creditors will not. The main hope is for another dilutive share issuance, but last time out AMC apes voted this idea down. This is a catch-22.
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