An AMC theater is depicted in the midst of the coronavirus disease pandemic (COVID-19) in the Manhattan neighborhood of New York City, New York, USA, January 27, 2021.
Carlo Allegri | Reuters
AMC Entertainment is exploring raising more capital, including through another possible stock sale, to resist the Covid-19 pandemic and take advantage of this week’s rise in its shares, people familiar with the matter said on Thursday.
The world’s largest cinema chain, with about 1,000 cinemas worldwide, has suffered an unprecedented turmoil after last year’s pandemic forced it to temporarily close many locations, while the public declined in those that remained open. AMC avoided bankruptcy through a debt restructuring deal last summer with its creditors and private equity firm Silver Lake, and a series of other financial transactions in recent months.
AMC said on Monday that it has raised $ 917 million since mid-December through equity and debt issues. “This means that any talk of an impending AMC bankruptcy is completely out of the question,” said Chief Executive Adam Aron in a statement accompanying the disclosure of the additional funds.
On Wednesday, AMC said it raised another $ 304.8 million from the sale of shares this week, profiting from an unprecedented recovery driven by social media driven by amateur brokers who hired hedge funds that had sold their shares.
On Thursday, the company said Silver Lake and other creditors decided to convert debt into shares in a transaction that is expected to reduce AMC’s obligations by $ 600 million.