In a recent SEC filing, it was revealed that AMC attempted to purchase an unspecified amount of theaters from Cineworld Group PLC. The U.K.-based Cineworld, which is the parent company of Regal Cinema, filed for chapter 11 bankruptcy last in September. They have since been trying to shed some of their non-vital assets, including theaters in Europe and North America.
To raise money for the deal, the Kansas-based theater company would have issued more AMC Preferred Equity units – or “APEs” – as well as finance some of their debt. AMC has raised $162 million from APEs so far. The deal has since fell through since AMC and Cineworld lenders could not come to terms over debt financing.
In the regulatory filing the exhibition giant said, “while AMC reserves the right to continue to explore the acquisition of value enhancing strategic assets, there can be no assurance that AMC will resume any discussions with the lenders or, if it were to do so, that it would be able to agree with lenders or any other party as to the terms of a mutually acceptable proposal.”
AMC is looking to recoup some of its losses over the past few years. The pandemic forced its theaters to close for months, with many shuttering for good. After being picked up as a meme stock in January 2022, AMC shares yo-yoed over the summer but have since dropped sharply. The attempted acquisition signals optimism for the exhibitor company as they hope audiences in 2023 will return to pre-pandemic levels.
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