The world’s largest movie theater chain, AMC Theaters, has raised $917 million in new equity and debt capital to help the company survive the pandemic winter. “This increased liquidity should allow the company to make it through this dark coronavirus-impacted winter,” the company said. They added that their “financial runway has been extended deep into 2021.”
The chain believes that it will continue to make progress regarding theater landlords and lease payments, and they’re hopeful that the vaccination push will result in a boost in ticket sales.
“Today, the sun is shining on AMC,” said AMC CEO and president Adam Aron. “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. This means that any talk of an imminent bankruptcy for AMC is completely off the table.”
Aron Continued, “looking ahead, for AMC to succeed over the medium term, we are going to need for much of the general public in the U.S. and abroad to be vaccinated,” Aron added. “To that end, we are grateful to the world’s medical communities for their heroic efforts to thwart the COVID virus. Similarly, we welcome the commitment by the new Biden administration and of other governments domestically and internationally to a broad-based vaccination program.”
This is some of the best news AMC and fans of the theatrical experience have heard in a while, and it’s confirmation that theaters, at least in some capacity, won’t be going away anytime soon.