Why AMC Entertainment's Stock Crashed This Morning
Shares of AMC Entertainment (NYSE: AMC) fell as much as 25% on Monday morning, climbing back to a milder 18% drop at noon EDT. Over the weekend, The New York Post wrote that the world's largest movie theater chain is looking into bankruptcy as a way out of the coronavirus conundrum.
According to the Post, AMC is talking to longtime legal services partner Weil, Gotshal & Manges about a Chapter 11 bankruptcy filing. This is just the start of a potentially long process, but the newspaper's sources noted that nobody hires this high-dollar law firm on a whim.
"You don't hire [lead WG&M lawyer Ray Schrock] unless you are filing," the Post's source said. "You are not going to hire them at their hourly rate to have a beer with them."
Source Fool.com
