The world’s largest film chain is still roughly $ 550 million off its fundraising goal.
On Tuesday, AMC CEO Adam Aron said the company had managed to raise just over $ 200 million of the $ 750 million it needs to fund cash requirements by the end of this year.
“We need to raise more, but we are working hard to do that and we have established a plan and a plan to get there,” he said. “Whether we get there or not, only time will tell.”
ArBC’s appearance on CNBC’s “Closing Bell” comes on the same day that his company’s shares fell to an 52-week intraday low of $ 1.91 per share and closed at a record low. ‘$ 1.98 per share.
AMC has been paralyzed by the coronavirus pandemic and its actions reflect investors’ lack of confidence in the immediate recovery of the film industry. The company’s shares fell more than 70% in 2020.
Movie theaters were forced to close in mid-March and spent more than six months last year closed to the public. AMC operates about 400 of its nearly 600 theaters with limited capacity and shorter hours. New York City theaters and parts of California remain closed.
The company is trying to renegotiate its rent payments with the landlords and is looking for discounts, rebates and deferrals. In the event that the company could not obtain additional sources of liquidity, he reiterated, it may have to initiate bankruptcy proceedings.
AMC is not eligible for $ 15 billion in Save Our Stages grants, which is part of the much larger $ 900 billion coronavirus relief package, as it is a publicly traded company with locations in addition to ten states.
AMC plunged into the pandemic with nearly $ 5 billion in debt, which it had amassed by equipping its theaters with luxury seats and buying competitors such as Carmike and Odeon.
The company has already renegotiated its debt to improve its balance sheet and in December received a $ 100 million investment from Mudrick Capital Management.
“We have the job cut out for us,” Aron said. “We need to raise more money to get to the other side. That said, we’ve already done it four times, and that’s our focus.”