March 29, 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 Entertainment Holdings, disclosed Tuesday that the enterprise experienced elevated $200 million in funding, but the proceeds were being however $550 million shorter of the focused $750 million threshold, reports CNBC.

What Took place: The pandemic compelled the theatre chain into a money crunch. In December, CNBC reported that the enterprise demands to secure an more $750 million to meet its liquidity need in 2021.

Talking about the shortfall, Aron explained that “We need to have to raise much more, but we’re working really hard to do that, and we have laid out a strategy and a blueprint to get there. Irrespective of whether we get there or not, only time will notify,” CNBC quoted.

AMC secured $a hundred million in financial debt cash last thirty day period from Mudrick Capital Management — an event-driven investment company specializing in distressed credit history.

Why Does It Issue: With the mounting liquidity problems, AMC’s inventory dipped to its fifty two-week minimal of $one.91 on Tuesday. Starting up from $7.thirty at the beginning of January 2020, the inventory has shed 72{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} for the duration of the calendar year.

AMC did not get grants from the $fifteen billion COVID-19 aid bundle mainly because it is a publicly traded enterprise with locations in much more than ten states, CNBC noted.

Nearly one particular-third of AMC’s theatres, which includes New York Town and sections of California, stay closed, while the other two-thirds are functioning at a limited capability.

CNBC suggests that the theatre is revisiting its lease and rental settlement with landlords. Incapacity to arrive to an settlement could force the enterprise to start personal bankruptcy proceedings.

Selling price Motion: AMC shares closed one.49{744e41c82c0a3fcc278dda80181a967fddc35ccb056a7a316bb3300c6fc50654} decrease at $one.98 on Tuesday.

This tale at first appeared on Benzinga.

© 2021 Benzinga.com. Benzinga does not supply investment guidance. All rights reserved.

AMC Entertainment, Benzinga, COVID-19, funding, motion picture theaters