As the coronavirus pandemic (COVID-19) approaches the one-year mark and movie chains have remained closed for almost the same time, the two largest US movie chains are taking drastic steps to stay afloat . AMC Cinemas and Regais Cinemas both took steps to ensure that they will remain for a few more months. But it remains to be seen whether that will be enough.
AMC cinemas keep bankruptcy at bay
AMC Theaters is the largest cinema chain in the world, but it is on the verge of bankruptcy before the pandemic destroys its finances. But the company managed to raise $ 917 million in new shares and debt capital, AMC Theaters said on Monday (via Variety), calling it enough money to “survive this dark and coronavirus-impacted winter, adding that its” catwalk financial crisis was extended deeply in 2021. ”
In addition, the company signed letters of commitment for $ 411 million of incremental debt capital in effect until mid-2023, unless it is repaid before that, through upsizing and refinancing of its European revolving credit line.
But despite this temporary palliative measure, AMC’s CEO Adam Aron is more hopeful than ever that the theater network can recover, especially with ongoing dialogues with theater owners and the implementation of vaccination. Aron said in a statement:
“Today, the sun is shining at AMC. After securing more than $ 1 billion in cash between April and November 2020 through capital increases and debt, along with a modest amount of asset sales, we are proud to announce today that in the past six weeks, AMC raised an additional capital injection of US $ 917 million to strengthen and solidify our liquidity and financial position. This means that any talk of an impending AMC bankruptcy is completely out of the question. “
Regal Cinemas joins the club in launch offers
Meanwhile, Regal Cinemas, North America’s 2nd network, is joining AMC and other theater chains such as Cinemark Holdings and Cineplex to close deals with Hollywood studios to shorten theatrical launch windows. In a New York Times report, it was revealed that Regal is “now in negotiations with Universal for a similar deal”.
This is a big change of heart for Mooky Greidinger, the owner of Regal Cinemas, who at the time of Aron’s AMC deal with Universal, criticized it as “the wrong move at the wrong time”, arguing that people would be reluctant to buy tickets if they could see the same movie in their fourth lives just a few weeks later.
But AMC apparently took a step further, according to the report, by granting Warner Bos. release on the day and date of the next film starring Denzel Washington The little things, with the chain showing films without an exclusive showcase. With Regal joining the club in this type of business, the window of release in theaters is likely to change forever from now on, even after the pandemic.
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