Investors help AMC Theatres escape bankruptcy
WICHITA, Kan. (KWCH) - Movie theater chain AMC Entertainment announced Monday (Jan. 25) that it’s future isn’t quite so bleak as it recently appeared to be. Pushed to the brink of bankruptcy last year by the COVID-19 pandemic, the company announced that its doors will remain open into 2021, thanks to a $917 million infusion of cash from investors.
“Today, the sun is shining on AMC. After securing more than $1 billion of cash between April and November of 2020, through equity and debt raises along with a modest amount of asset sales, we are proud to announce today that over the past six weeks AMC has raised an additional $917 million capital infusion to bolster and solidify our liquidity and financial position,” AMC CEO and President Adam Aron said in a statement. “This means that any talk of an imminent bankruptcy for AMC is completely off the table.”
Aron added that for the movie theater chain to be successful, at least in the medium term, “(they) are going to need for much of the general public in the U.S. and abroad to be vaccinated.”
“To that end, we are grateful to the world’s medical communities for their heroic efforts to thwart the COVID virus,” Aron said. “Similarly, we welcome the commitment by the new Biden administration and of other governments domestically and internationally to a broad-based vaccination program.”
CBS News reports from AMC that the company expects the $917 million “to keep its operations afloat well into 2021 and that AMC officials said in a regulatory filing that the company will make it through this year “if moviegoers return to theaters, and if landlords are willing to lower rent payments.”
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