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AMC is not going bankrupt anymore, according to AMC

AMC Theatres said it has secured enough cash to stay in business as the world starts to see COVID-19 vaccine distribution

In this May 11, 2005, file photo, people enter AMC’s Studio 30 theater in Olathe, Kan. AMC Theatres, the world’s largest movie theater chain, has unveiled a $20-a-month subscription service to rival the flagging MoviePass.
In this May 11, 2005, file photo, people enter AMC’s Studio 30 theater in Olathe, Kan. AMC Theatres, the world’s largest movie theater chain, has unveiled a $20-a-month subscription service to rival the flagging MoviePass.
Orlin Wagner, Associated Press

Social media has gone bonkers with tweets about how to #SaveAMC. Most of the tweets surround buying AMC stock in order to raise its price and save the company.

But AMC Entertainment said Monday that bankruptcy is off the table after gathering $917 million of fresh financing amid the coronavirus pandemic, Bloomberg reports.

What happened?

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.

Mike Campellone, an analyst with Bloomberg Intelligence, said AMC does face low attendance right now. But the recent funding and liquidity helps keep the company alive.

  • “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.

Context

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.