said Tuesday its cash will be gone by late this year or early next and it’s exploring potential sources of additional liquidity, including asset sales, joint ventures or minority investments.
In an SEC filing, the company said it “believes its cash burn to date is in line with the Prior Update. However, given the reduced movie slate for the fourth quarter, in the absence of significant increases in attendance from current levels or incremental sources of liquidity, at the existing cash burn rate, the Company anticipates that existing cash resources would be largely depleted by the end of 2020 or early 2021.
AMC has raised close to $40 million to date by selling shares. In a major debt restructuring announced over the summer, it brought in several hundred million dollars in cash, reduced interest payments and extended maturities on loans. But AMC and other exhibitors figured they’d be back on their feet sooner than appears to be the case. Reopening theaters, as the chain has been doing, costs more than keeping them closed but either way the situation has become dire.
AMC said it’s also looking at additional debt and equity financing and further renegotiations with landlords regarding its lease payments. It stopped short of saying it was considering an outright sale but said it would consider joint-venture or other arrangements with existing business partners. AMC is majority owned by Chinese conglomerate Wanda. Investment firm Silver Lake is also an investor.
States need to lift the mask requirement and then people will go back to the theaters. NoMasks
Rotten movies + lockdowns = The Obvious.