AMC is not going out of business, as it reportedly received an estimated $917 million cash injection which removed the threat of the movie theatre chain going bankrupt.
In May 2020, reports surfaced about the threat of bankruptcy for movie theatre chain, AMC Entertainment. The threat of bankruptcy was due to the impact that the pandemic had on movie theatres across the globe. Due to the restrictions that were put in place to safeguard the public, movie theatres were amongst the hardest hit, considering the need to wear a face mask in the theatre and reduced numbers. Moreover, due to a decline in new movie releases, people were less inclined to visit movie theatres.
However, in January 2021, the company released a statement confirming that the threat of bankruptcy was no more. This was due to a cash injection of an approximately $917 million that the company received. The company confirmed that an estimated $506 million was raised from capital received from the company’s December stock offering. The offering resulted in investors buying stock, which ultimately raised the bulk of the money.
The additional $411 million was noted as credit that the company received from its European subsidiary, Odeon. Due to the amount raised, the threat of bankruptcy or the company closing down has been avoided for the foreseeable future.
With movie theatres still being closed, it is uncertain when AMC theatres will reopen. However, with the vaccination rollout programme already underway, there is hope that the company will open its theatre doors soon. It is speculated that the company will open its doors again in the second half of the year, should the vaccination programme continue to go smoothly in the country.