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

Adam Aron, CEO of the world’s most significant chain of theaters – AMC Leisure Holdings, disclosed Tuesday that the firm experienced elevated $200 million in funding, but the proceeds have been continue to $550 million small of the qualified $750 million threshold, studies CNBC.

What Happened: The pandemic pressured the theatre chain into a hard cash crunch. In December, CNBC noted that the firm wants to protected an supplemental $750 million to satisfy its liquidity requirement in 2021.

Talking about the shortfall, Aron claimed that “We have to have to elevate extra, but we’re performing challenging to do that, and we have laid out a approach and a blueprint to get there. No matter if we get there or not, only time will notify,” CNBC quoted.

AMC secured $100 million in debt resources previous thirty day period from Mudrick Funds Management — an function-pushed expense firm specializing in distressed credit.

Why Does It Make a difference: With the mounting liquidity considerations, AMC’s stock dipped to its 52-7 days low of $one.ninety one on Tuesday. Beginning from $7.thirty at the commencing of January 2020, the stock has lose 72% for the duration of the calendar year.

AMC did not acquire grants from the $fifteen billion COVID-19 aid deal for the reason that it is a publicly traded firm with locations in extra than 10 states, CNBC noted.

Just about one-3rd of AMC’s theatres, including New York City and parts of California, continue being shut, while the other two-thirds are running at a limited potential.

CNBC claims that the theatre is revisiting its lease and rental settlement with landlords. Incapability to arrive to an settlement could drive the firm to begin personal bankruptcy proceedings.

Selling price Motion: AMC shares shut one.forty nine% lessen at $one.98 on Tuesday.

This story initially appeared on Benzinga.

© 2021 Benzinga.com. Benzinga does not present expense advice. All legal rights reserved.

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