AMC Theatres Escaped Bankruptcy With Latest Cash Injection – But for How Long?

Jeremy Fuster
·1 min read

AMC Theatres has spent the COVID-19 pandemic trying to stave off bankruptcy, but its latest round of financing may have bought the theater chain enough time to survive until cineplexes can reopen…at least, if that reopening comes sometime this year. On Monday, CEO Adam Aron announced that the company has raised $917 million in new equity and debt capital and expects that the new cash flow, combined with negotiations with landlords on lease payments and successful vaccination of millions of Americans, should be enough to prevent AMC from having to file bankruptcy before health officials give movie theaters the green light to reopen. Also Read: AMC Theatres Has Raised $917 Million to Weather 'Dark Coronavirus-Impacted Winter' Currently, about 74% of AMC’s U.S. circuit — the country’s largest theater chain — is open with only 155 of its 593 locations closed due to state COVID mandates. But with last weekend’s North American box office falling to just under $10 million, revenue has almost entirely collapsed for the company as it has for the entire exhibition industry. While AMC has yet to release its Q4 earnings, the chain reported a 92.5% drop in attendance year-over-year through the end of September and a 91%...

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