AMC notes spike amid takeover talk; Chesapeake Energy eyed on bankruptcy concerns

By James McCandless

San Antonio, May 11 – The distressed debt space started a new week with attention on newsmakers in the entertainment and energy sectors.

AMC Entertainment Holdings, Inc.’s notes spiked amid reports of potential takeover talks between the company and Amazon.

The 5 7/8% senior subordinated notes due 2026 jumped up 7 points to close at 29 bid. The 10½% notes due 2025 improved by 5 points to close at 85 bid.

Early Monday, the Leawood, Kan.-based movie theater chain’s structure was sent higher on reports that the company is in talks for a potential buyout by Amazon.com Inc.

In the oil and gas space, Chesapeake Energy Corp.’s issues varied after going-concern worries sparked bankruptcy talk.

The 4 7/8% senior notes due 2022 tacked on ¼ point to close at 5 bid. The 11½% notes due 2025 shaved off ½ point to close at 5½ bid.

On Monday morning, the Oklahoma City-based independent oil and gas producer said in a Securities and Exchange Commission filing that “management has concluded that there is substantial doubt about the company's ability to continue as a going concern.”

The company also noted that it has hired strategic advisers and is considering filing for Chapter 11 bankruptcy.

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