An AMC theater in the middle of the coronavirus disease pandemic (COVID-19) is shown in the Manhattan district of New York City, New York, USA, on January 27, 2021.
Carlo Allegri | Reuters
AMC Entertainment is exploring raising more capital, including another possible stock sale, to withstand the Covid-19 pandemic and take advantage of this week’s focus on its shares, people familiar with the matter said Thursday .
The world’s largest cinema chain, with nearly 1,000 cinemas worldwide, suffered unprecedented turmoil after last year’s pandemic forced it to temporarily close many venues, while attendance was reduced. to those who remained open. AMC avoided bankruptcy through a debt restructuring deal last summer with its creditors and private equity firm Silver Lake, and a number of other financial transactions in recent months.
AMC said Monday it had raised $ 917 million since mid-December through equity and debt issues. “This means that any conversation about an impending bankruptcy for AMC is completely off the table,” chief executive Adam Aron said in a statement accompanying the disclosure of the additional funds.
On Wednesday, AMC said it raised an additional $ 304.8 million by selling shares this week, reaching an unprecedented rally driven by social media driven by amateur traders taking hedge funds that had reduced their shares.
On Thursday, he said Silver Lake and other creditors decided to convert equity holdings into equity debt in a transaction that is expected to reduce AMC’s obligations by $ 600 million.