Cash-strapped exhibitor AMC Entertainment on Thursday said it will raise $500 million in new debt to bolster its balance sheet liquidity.
AMC said in a supplemental disclosure that it is generating no revenue while its U.S. theaters are shut down. As of March 31, the chain said it had $299.8 million in cash on hand, including borrowings of $215.0 million drawn from a revolving line of credit facility, and another £89.2 million tapped from another revolving credit facility for Odeon Cinemas in the U.K.
With Wall Street judging a Chapter 11 bankruptcy filing for AMC Theatres increasingly likely, shares in AMC Entertainment have been tumbling as the company, in which Chinese conglomerate Dalian Wanda Group owns a majority voting stake, has been looking for various ways to reduce costs. That includes furloughing all of its 600 corporate employees, including CEO Adam Aron, in late March following the closure of all its cinemas.
The exhibition giant on Thursday said it had little visibility to predict when its cinema chain can enjoy a significant rebound. And it noted that some studios were breaking the traditional theatrical window with releases.
It’s a Chinese company so they shouldn’t have trouble finding cash
OrangeGrove55 That said I am not a fan of Trump’s plan at all. I think he has handled this whole pandemic disastrously, and I can’t trust him to do a credible job on reopening America.
OrangeGrove55 Hmm. Interesting.
n c