AMC (AMC  ) is working on closing a deal that could help the battered theater chain keep bankruptcy at bay. The attempt by AMC has been marred by fighting between lenders attempting to secure a deal on favorable terms for themselves. The deal could alleviate pandemic-related pains, but the company still faces issues that began before the worldwide shutdown.

The deal, as it sits on the table, would see bondholders put up $200 million in senior loans. Bondholders will also swap their unsecured debt at a discount for second-lien debt. Silver Lake Group LLC, which owns $600 million in bonds, will exchange for a first-lien debt. The deal as it stands now is being met with resistance by AMC's senior lenders, including Apollo Global Management (APO  ) and Ares Management (ARES  ).

The lenders against the current plan have submitted a counter-proposal, however. Lenders would offer $200 million in senior debt financing along with $200 million shared by junior bondholders. The kicker, however, is cutting Silver Lake out of the deal.

The Hail Mary by the likes of Apollo and Ares doesn't appear to have worked, though, as AMC seems to be poised to pursue the deal with Silver Lake.

The Silver Lake deal is absolutely vital for AMC's survival. The company admitted in June that it didn't have the means to survive for much longer, and voiced concerns that if reopening occurred any later than June that the company might not have the funds to reopen at all. The only other relief that appeared for the company was the rumor of a potential sale to Amazon (AMZN  ), which drove stock up and restored some investor confidence in the theater chain. There has been little word on the deal since, making the possibility of a buyout less likely with each passing month.

AMC hasn't had a good few months, the pandemic wreaked havoc on the company as full-scale economic shutdowns deprived the theater chain of income for an uncomfortably long period of time. To add to AMC's pains, Coronavirus doesn't appear to be going away anytime soon, with a surge of new infections sweeping the United States at a record pace. Already, the company had pushed back its reopening date, though the prospect of new lockdowns in states across the country may force the theater chain to halt reopening in some parts of the country.

Further compounding AMC's problems is the monumental spike in popularity of streaming services as consumers remain largely at home and out of work or working remotely. In April, AMC severed ties with Universal Studios (Parent company Comcast, (CMCSA  ) over the company's plan to release directly to digital alongside theater releases, though various other studios have floated the possibility of doing the same (some even doing so at the time of the Universal-AMC split) but did not receive similar treatment from AMC. A shift from traditional movie distribution would be a blow to the company, even if the deal goes through.