A group of senior lenders led by Apollo Global Management Inc. called on AMC Entertainment Holdings Inc. to file for Chapter 11 bankruptcy, the New York Post reported Dec. 11, citing sources.

Apollo Global, Canyon Capital Advisors LLC and Davidson Kempner Capital Management LLC reportedly offered the theater chain $1 billion worth of debtor-in-possession financing to help keep it operational in 2021.

This comes as AMC secured a commitment to receive $100 million in cash on Jan. 15, 2021, from New York-based Mudrick Capital Management LP as a result of a new first-lien debt financing. Mudrick Capital will convert $100 million of existing AMC debt into AMC common stock as AMC issues in aggregate 21,978,022 of its shares in common stock.

AMC reportedly said it does not expect the financing from Mudrick Capital to keep it operational beyond January 2021, noting that the theater chain will require at least an additional $750 million worth of cash to remain operational through 2021.

AMC is also reportedly considering alternatives to Apollo's offer, which include issuing fresh stock and converting certain second-lien debt to generate cash.

AMC, which in October warned that it would likely run out of cash by the end of 2020, recently filed a shelf registration to offer up to 200 million shares to help keep it afloat.

The funding, which is subject to customary conditions, was arranged for AMC by Moelis & Co. Weil Gotshal & Manges LLP acted as AMC's legal adviser. Wachtel Lipton Rosen & Katz served as counsel to Mudrick Capital Management.