AMC Entertainment Holdings Inc (AMC) raised $917 million and is no longer facing bankruptcy, the world’s largest cinema chain said. In its press release, the organization confirmed this. The funds were collected from the issue of new shares, among other items.
AMC Entertainment shares on the New York Stock Exchange rose as high as $4.88 on Monday. But, at the ring of the bell on the day, the stock settled at $4.42, still a rise of 25.93 percent from the closing price of $3.51 at the end of trading in the Friday session. The Monday session brought the gain to nearly 90% over the last 5 sessions.
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The impending bankruptcy, said AMC CEO and President Adam Aron, is no longer being addressed. According to Bloomberg, even without any rise in cinema attendance, the network would be able to hold on until July, provided that concessions from landlords, who owe $450 million as of December 31, remain unchanged.
The lockdown regulations have hard struck AMC. Because of the stay at home restrictions, most people did not choose to visit cinemas, because some of them were willing to reopen with limitations. Moreover, because leading studios have delayed high-profile film premieres to a later date, the crisis has deteriorated.
The group said that in the fourth quarter of 2020, cinema occupancy dropped by about 92 percent in the US and 89 percent worldwide, compared to the same timeframe a year before. This resulted in expenditures of about $124 million a month.
AMC Entertainment Holdings Inc (AMC) revealed at the end of last year that it needed to collect at least $750 million to continue its operation. The assets will have sold out this month without new contributions. The chain said it would continue to work with landlords to adjust the terms of such contracts and to avert a future monetary crisis.
