AMC saw its stock sore 37% Monday morning. The company also raised $506 million of equity in recent weeks that will help it survive the pandemic.
- “Any talk of an imminent bankruptcy for AMC is completely off the table,” AMC Chief Executive Officer Adam Aron said.
- “The additional liquidity helps keep the lights on for now, but the cinema sector as a whole is still largely challenged,” he said, according to Bloomberg.
Back in May 2020, reports surfaced that AMC Entertainment might go bankrupt, especially since the coronavirus pandemic left movie theaters closed down, as I reported for the Deseret News. AMC secured a slight boost from a debt sale and applied for federal aid, which helped. But rumors about bankruptcy have lingered for months now.
AMC has reopened its theaters with limited capacity and with face mask requirements, but the lack of new movies means less people are headed to movie theaters.