Debt ratings agency S&P Global Ratings on Wednesday reduced yet again AMC Entertainment's credit rating after the exhibition giant unveiled plans for a debt swap for additional financial headroom. "We view the proposed transaction as distressed," the research firm said in an investors note.
AMC announced it was launching a debt exchange offer that would see subordinated bondholders accept cuts of up to half of the $2.3 billion full face value on the existing debt. "We would consider the completion of the proposed exchange as a tantamount to a default because noteholders would receive less than the original par amount of the notes," S&P Global added.
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