June 18, 2024

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AMC Still Needs $550M to Stay Afloat Through 2021, CEO Says

Adam Aron, CEO of the world’s largest chain of theaters – AMC Leisure Holdings, disclosed Tuesday that the enterprise had raised $200 million in funding, but the proceeds ended up even now $550 million quick of the qualified $750 million threshold, studies CNBC.

What Happened: The pandemic forced the theatre chain into a dollars crunch. In December, CNBC documented that the enterprise demands to protected an extra $750 million to meet up with its liquidity necessity in 2021.

Speaking about the shortfall, Aron claimed that “We need to raise much more, but we’re working hard to do that, and we’ve laid out a approach and a blueprint to get there. Whether or not we get there or not, only time will inform,” CNBC quoted.

AMC secured $a hundred million in credit card debt funds past thirty day period from Mudrick Cash Management — an function-pushed financial commitment organization specializing in distressed credit.

Why Does It Make any difference: With the mounting liquidity worries, AMC’s stock dipped to its 52-week very low of $1.91 on Tuesday. Commencing from $7.30 at the beginning of January 2020, the stock has lose seventy two% through the yr.

AMC did not get grants from the $fifteen billion COVID-19 relief package because it is a publicly traded enterprise with locations in much more than ten states, CNBC pointed out.

Just about a person-3rd of AMC’s theatres, which include New York City and sections of California, stay shut, while the other two-thirds are running at a limited capacity.

CNBC states that the theatre is revisiting its lease and rental settlement with landlords. Inability to arrive to an settlement could drive the enterprise to begin bankruptcy proceedings.

Cost Action: AMC shares shut 1.forty nine% reduced at $1.98 on Tuesday.

This story at first appeared on Benzinga.

© 2021 Benzinga.com. Benzinga does not provide financial commitment advice. All rights reserved.

AMC Leisure, Benzinga, COVID-19, funding, movie theaters