AMF Bowling May File for Chapter 11

AMF Bowling Inc., the world’s largest operator of bowling centers, said it may file for Chapter 11 restructuring under the U.S. Bankruptcy Code as it seeks to resolve its debt problems.

The company said it’s holding talks with banks and bondholders and hasn’t yet recommended the Chapter 11 filing to the board. AMF said it’s discussing a secured debtor-in-possession financing facility with its banks to ensure that it has enough cash to meet expenses during a Chapter 11 reorganization.

The Richmond, Va.-based company, whose shares have fallen 94% in the last year, lost revenue after poorly performing centers were closed last year.

AMF, which owns and operates 408 bowling centers in the U.S. and 118 centers in nine other countries, said its fourth-quarter loss widened to $81.6 million, or 98 cents a share, from a loss of $44.4 million, or 53 cents, a year earlier.

Shares of AMF were unchanged at 13 cents in over-the-counter trading. The announcement was made after the close of regular trading.