The world’s largest cinema chain is still about $ 550 million behind its fundraising goal.
On Tuesday, AMC CEO Adam Aron said the company managed to raise just over $ 200 million of the $ 750 million needed to finance its cash needs by the end of this year.
“We need to raise more, but we are working hard to do that and we have outlined a plan and project to get there,” he said. “Whether we get there or not, only time will tell.”
Aron’s appearance on CNBC’s “Closing Bell” comes on the same day that his company’s stock fell to a 52-week intraday low of $ 1.91 per share and closed at a record low of $ 1.98 per share.
AMC was hurt by the coronavirus pandemic and its actions reflect investors’ lack of confidence in the film industry’s immediate recovery. The company’s shares fell more than 70% in 2020.
The cinemas were forced to close in mid-March and spent more than six months last year closed to the public. AMC is operating about 400 of its nearly 600 cinemas with limited seating capacity and fewer hours. Cinemas in New York and parts of California remain closed.
The company is trying to renegotiate the lease payment with the owners and is looking for reductions, rebates and deferrals. If the company is unable to guarantee additional sources of liquidity, he reiterated, it may have to enter bankruptcy.
AMC is not eligible for donations from the Save Our Stages Act, which is part of a much larger $ 900 billion coronavirus relief package because it is a publicly traded company with locations in more than 10 states.
AMC entered the pandemic with almost $ 5 billion in debt, which it accumulated by equipping its cinemas with luxury seats and buying competitors like Carmike and Odeon.
The company has already renegotiated its debt to improve its balance sheet and in December received an investment of $ 100 million from Mudrick Capital Management.
“We have a lot of work for us,” said Aron. “We need to raise more money to get to the other side. That said, we have already done this four times and that is our focus.”