An AMC theater is illustrated against the backdrop of the coronavirus disease pandemic (COVID-19) in the Manhattan neighborhood of New York City, New York, USA, January 27, 2021.
Carlo Allegri | Reuters
AMC Entertainment is exploring higher capital raising, including through another possible share sale, to withstand the Covid-19 pandemic and take advantage of this week’s rally in its shares, people familiar with the matter said on Thursday.
The world’s largest cinema chain, with about 1,000 cinemas worldwide, has suffered unprecedented turmoil after last year’s pandemic forced it to temporarily close many places, while the number of those left open low. AMC eliminated bankruptcy through a debt restructuring agreement last summer with creditors and private equity firm Silver Lake, as well as a number of other financial transactions in recent months.
AMC said Monday it had raised $ 917 million since mid-December through equity issues and debt. “This means that any discussion of an imminent bankruptcy for AMC is completely shut down,” Chief Executive Adam Aron said in a statement accompanying the disclosure of the additional funds.
On Wednesday, AMC said it raised an additional $ 304.8 million by selling shares this week, taking part in an unprecedented social media-driven rally fueled by amateur traders who took out hedge funds. they shortened the actions.
On Thursday, he said Silver Lake and other creditors decided to convert debt holdings into equity into a transaction expected to reduce AMC’s obligations by $ 600 million.