AMC says chapter off the desk after elevating greater than 900 million
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AMC shares skyrocketed on Monday after the company announced it had received enough funding to stay open and operational through 2021.
“This means that any talk of an impending bankruptcy for AMC is completely off the table,” said CEO Adam Aron.
Since December 14, the world’s largest cinema chain has raised $ 917 million in new equity and debt, the company said in an SEC filing on Monday.
Approximately $ 500 million of this fundraising came from the issuance of new common stock and an investment agreement with Mudrick Capital Management. The company has also issued commitments for additional debt of $ 411 million to increase and refinance its European revolving credit facility.
The company’s shares rose more than 10% in morning trading. The stock is down 48% over the past year, increasing its market value to $ 564 million.
“For AMC to be successful in the medium term, we need to vaccinate a large part of the public in the US and abroad,” said Aron. “We welcome the commitment of the new Biden government and other governments at home and abroad to a broad vaccination program.”
Cinemas have been hard hit by the coronavirus pandemic. At first they were closed due to increasing cases, and then moviegoers were hesitant to return when they reopened. Cinemas hope that an influx of new content from Hollywood, declining Covid-19 cases, and a surge in vaccinations will give consumers confidence to return.
Around 21 million vaccines have been administered to date. However, the U.S. is still seeing at least 170,000 new Covid-19 cases and at least 3,080 virus-related deaths per day based on a 7-day average calculated by CNBC using data from Johns Hopkins University.
There were a number of movie delays last week. The latest James Bond flick, MGM’s “No Time to Die”, was postponed from April to October, Sony’s “Ghostbusters: Afterlife” was postponed to November, and Sony’s “Morbius” and “Uncharted” were closed by 2022.
Disney also postponed or removed half a dozen films, including “The King’s Man,” later in the year.
The few films that remain in February and March are tied to streaming releases. Warner Bros. “Tom and Jerry” hits HBO Max and theaters February 26th, Disney’s “Raya and the Last Dragon” hits theaters and Disney + on March 5th for $ 30, and Warner Bros “Godzilla v. Kong” hits HBO Max and in theaters March 26th.