02/03/2021

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

Adam Aron, CEO of the world’s major chain of theaters – AMC Enjoyment Holdings, disclosed Tuesday that the firm experienced raised $200 million in funding, but the proceeds were being however $550 million short of the specific $750 million threshold, stories CNBC.

What Took place: The pandemic forced the theatre chain into a hard cash crunch. In December, CNBC claimed that the firm demands to secure an further $750 million to meet its liquidity necessity in 2021.

Speaking about the shortfall, Aron mentioned that “We need to have to increase much more, but we’re performing challenging to do that, and we’ve laid out a program and a blueprint to get there. Regardless of whether we get there or not, only time will tell,” CNBC quoted.

AMC secured $100 million in credit card debt cash last thirty day period from Mudrick Funds Management — an function-pushed financial investment business specializing in distressed credit score.

Why Does It Make a difference: With the mounting liquidity considerations, AMC’s stock dipped to its 52-7 days reduced of $one.ninety one on Tuesday. Starting up from $seven.30 at the beginning of January 2020, the stock has drop seventy two% in the course of the year.

AMC did not get grants from the $15 billion COVID-19 reduction offer mainly because it is a publicly traded firm with destinations in much more than ten states, CNBC mentioned.

Pretty much a person-3rd of AMC’s theatres, together with New York Metropolis and sections of California, remain closed, whilst the other two-thirds are functioning at a minimal ability.

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

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

This story originally appeared on Benzinga.

© 2021 Benzinga.com. Benzinga does not present financial investment advice. All rights reserved.

AMC Enjoyment, Benzinga, COVID-19, funding, film theaters