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AMC Rules out Near-Term Bankruptcy, Shares Soar 40%

Jan 25 (Reuters) - AMC Entertainment Holdings Inc said on Monday that any talk of an imminent bankruptcy is “completely off the table” after the cash-strapped movie theater chain raised an additional $917 million to help cushion the blow from the pandemic.

AMC shares, which have lost nearly half their value in the last 12 months, surged 40% in trading before the bell.

The New York-based company said it had raised capital by issuing new shares, while executing commitment letters for more debt.

The announcement comes as AMC continues to face heavy losses, with fresh pandemic-led restrictions forcing theaters to shut again.

Delays in the release of new movies due to the pandemic have crushed theater chains such as AMC, Cineworld Plc and Cinemark Holdings Inc, with the latest setback being the postponement of the James Bond film “No Time to Die”.

The company also said it was estimating that its “financial runway has been extended deep into 2021”, but warned investors on the uncertainty of its future cash needs.

(Reporting by Eva Mathews in Bengaluru; Editing by Anil D’Silva)

Source: Reuters

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