An AMC theater is screened amid coronavirus (COVID-19) disease in New York City, New York, USA, on January 27, 2021.
Carlo Allegri | Reuters
The people familiar with the matter have investigated AMC Entertainment to raise more capital, including through another possible share sale, to withstand the Covid-19 pandemic.
The world’s largest cinema chain, with around 1,000 cinemas worldwide, has experienced unprecedented turmoil after the pandemic last year forced many venues to close temporarily, while attendance at those that remain open fell. AMC averted bankruptcy last summer through a debt restructuring agreement with its creditors and private equity firm Silver Lake, and a series of other financial transactions.
AMC said on Monday it had been raising $ 917 million through stock and debt issues since mid-December. “This means that any talk of a looming bankruptcy for AMC is completely off the table,” CEO Adam Aron said in a statement with the disclosure of the additional funds.
AMC said on Wednesday that it had raised an additional $ 304.8 million this week by selling shares and creating an unprecedented social media-driven rally driven by amateur traders entering into hedge funds that have shorted its shares.
On Thursday, Silver Lake and other creditors decided to convert debt ownership into equity in a deal that was expected to reduce AMC’s liabilities by $ 600 million.