The world’s largest movie show chain is still about $550 million shy of its fundraising purpose.
On Tuesday, AMC CEO Adam Aron stated the corporate had managed to boost simply over $200 million of the $750 million it must fund money necessities by then finish of this 12 months.
“We need to raise more, but we’re working hard to do that and we’ve laid out a plan and a blueprint to get there,” he stated. “Whether we get there or not, only time will tell.”
Aron’s look on CNBC’s “Closing Bell” comes the identical day that his firm’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 has been crippled by the coronavirus pandemic and its shares replicate buyers’ insecurity within the movie show business’s quick restoration. Shares of the corporate fell greater than 70% in 2020.
Movie theaters had been compelled to shutter in mid-March and spent greater than six months final 12 months closed to the general public. AMC is working round 400 of its practically 600 theaters with restricted seating capability and shorter hours. Theaters in New York City and components of California stay closed.
The firm is within the means of making an attempt to renegotiate its hire funds with landlords and is seeking reductions, abatements and deferrals. Should the corporate not be capable of safe further sources of liquidity, it reiterated, it might should enter chapter proceedings.
AMC is not eligible for grants from the $15 billion Save Our Stages Act, which is a part of the a lot bigger $900 billion coronavirus aid bundle, as a result of it’s a publicly traded firm with areas in additional than 10 states.
AMC headed into the pandemic with practically $5 billion in debt, which it had amassed by outfitting its theaters with luxurious seating and from shopping for opponents such as Carmike and Odeon.
The firm has already renegotiated its debt to enhance its steadiness sheet and in December obtained a $100 million funding from Mudrick Capital Management.
“We have our work cut out for us,” Aron stated. “We do need to raise more money to get to the other side. Having said that, we’ve done that four times already, and that’s our focus.”