Can AMC Theatres Survive the Pandemic Without Bankruptcy or Downsizing Theaters?
Whenever movie theaters reopen next year and blockbusters return after months of pandemic delays, a major question will be whether the recovery will be enough to pull AMC Theatres back from the brink of bankruptcy — or from shuttering or selling off venues to survive. Since the start of the pandemic in mid-March, revenue for the U.S.’s largest theater chain has collapsed by a staggering 92% compared to the same period in 2019. The company’s stock, already struggling at the start of the year at $7.46 per share, closed at $2.59 on Tuesday as the company has fought to maintain enough cash flow to cover operating costs and a debt burden that stands just under $5 billion. For now, the company has said it has enough cash reserves to get through at least the end of January, but will need at $750 million to remain viable through 2021. But the situation is precarious enough that on Monday the company’s majority stakeholder, Beijing-based Wanda, pushed for a change to the structure of the board of directors’ voting process to reduce the possibility of a hostile takeover. AMC did not immediately respond to requests for comment. Also Read: What Movies Will Open...
Read original story Can AMC Theatres Survive the Pandemic Without Bankruptcy or Downsizing Theaters? At TheWrap