Uncategorized

ACM Entertainment will not fall into bankruptcy in 2021

AMC Theaters
Written by

The ghost of bankruptcy recedes from the horizon of AMC Entertainment. The movie theater operator has raised $ 917 million in new money since December 14, 2020, which keeps it from that grim prospect. This amount includes $ 506 million in equity and $ 411 million in debt maturing in mid-2023. The group believes it has a backbone strong enough to hold up well in 2021, which is still marked by the Covid-19 pandemic and the restrictive measures that accompany it.

On Wall Street, the AMC action took off 37% to 4.8114 dollars. However, it still shows a drop of 26% year on year.

“Any discussion of an impending AMC bankruptcy is completely irrelevant,” said Adam Aron, CEO of AMC, who had already managed to secure more than $ 1 billion in funding between April and November 2020.

“For the CMA to be successful in the medium term, we need a large portion of the public in the United States and abroad to be vaccinated,” he added.

In the third quarter of 2020, the group recorded a net loss of 905.8 million dollars and recorded a turnover of 119.5 million dollars, down 91% year-on-year, still penalized by low attendance at cinemas.

As of September 30, 2020, it had reopened 467 of its theaters in the United States, representing approximately 78% of its theaters in the country, with a capacity limited from 20% to 40%, and 321 international theaters owned or franchised, representing 90% of its network.

About the author

Buiness Recipes