AMC paper declines, stock hits new low; Mallinckrodt soft; distressed returns lower

By Cristal Cody

Tupelo, Miss., Aug. 23 – AMC Entertainment Holdings, Inc.’s bonds declined further on Wednesday while its stock sank to a new 52-week low ahead of the company’s plans to wipe out its preferred stock class in the upcoming session.

The movie theater operator’s stock has plunged more than 60% over the last three days.

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) were the company’s busiest bond traded on $15 million plus of volume, a source said.

The issue was down about 1 point at 74 1/8 bid.

AMC’s 7˝% senior secured first-lien notes due 2029 (Caa1/B-) went out flat at 69˝ bid on $6.2 million of secondary supply.

Meanwhile, news erupted that Mallinckrodt plc plans to file its second Chapter 11 bankruptcy after just emerging from bankruptcy a year ago.

Mallinckrodt’s most distressed issue, the 10% second-lien notes due 2025, was quoted at a print of 11.93 on $6 million of secondary volume, a source said.

S&P U.S. High Yield Corporate Distressed Bond index month-to-date total returns moved under 1% to 0.96% on Tuesday, down from 1.14% on Monday.

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