The world’s largest film theater chain is still about $ 550 million shy of its fundraising goal.
On Tuesday, AMC CEO Adam Aron said the company was able to raise just over $ 200 million of the $ 750 million it needs to fund cash requirements through the end of this year.
“We need to build more, but we are working hard to do that and we have devised a plan and a plan to get there,” he said. time to tell. “
Aron’s appearance on CNBC’s “Closing Bell” comes the same day that his company’s stock fell to a 52-week low of $ 1.91 per share and closed at a low of $ 1.98 per share.
AMC has been plagued by the pandemic of coronavirus and its shares show a lack of investor confidence in getting over the cinema industry immediately. Shares of the company fell more than 70% in 2020.
Theaters were forced to close a movie in mid-March and spent more than six months last year closed to the public. AMC operates approximately 400 of the nearly 600 theaters with limited seating capacity and shorter hours. Theaters in New York City and parts of California remain closed.
The company is currently trying to renegotiate its rent payments with landlords and is seeking discounts, discounts and delays. If the company would not be able to obtain additional liquidity sources, he reiterated, it may have to conduct bankruptcy proceedings.
AMC is not eligible for grants from the $ 15 billion Save Our Stages Act, which is part of the much larger $ 900 billion coronavirus relief package, as it is a public trading company with locations in more than 10 states.
AMC went into pandemic with nearly $ 5 billion in debt, which it had amassed by outsourcing luxury homes and buying competitors such as Carmike and Odeon.
The company has already restructured its debt to improve its balance sheet and in December secured a $ 100 million investment from Mudrick Capital Management.
“Our work has been cut out for us,” Aron said. “We need to raise more money to get to the other side. That said, we’ve done that four times already, and that’s our focus. “