Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

AMC to raise fresh capital as liquidity troubles deepen

10/20/2020 | 10:46pm EST
Three women use the emergency exit stairs of an AMC movie theater as a makeshift gym in Smyrna

(Reuters) - AMC Entertainment Holdings Inc, the world's largest theater chain, said on Tuesday it would raise cash through a share offering and was working hard to restructure its debt and avoid seeking bankruptcy protection.

The company, whose shares fell nearly 11%, is looking to sell up to 15 million of its Class A common stock, but Chief Executive Officer Adam Aron told Reuters that there was no timeline on the plan.

AMC's move to raise fresh capital comes after ratings agency S&P said earlier this month that the company had just six months of cash reserves.

"In the event the Company determines that these sources of liquidity will not be available to it or will not allow it to meet its obligations as they become due, it would likely seek an in-court or out-of-court restructuring of its liabilities," AMC said in a filing.

Big theater chains, including AMC and Cineworld Group, have reopened many of their locations, but fears of the virus and delays in major releases have kept audiences at bay.

The pandemic's impact on small and mid-sized theater companies has been more pronounced, with a majority having little hope of pulling through the crisis.

AMC said it was expecting revenue for the third quarter to be about $119.5 million, below market expectation of $155 million. The company had raked in $1.32 billion in the year-earlier quarter.

AMC's share offering will be managed by Goldman Sachs and Citigroup.

(Reporting by Akanksha Rana and Kanishka Singh; Editing by Shounak Dasgupta, Arun Koyyur and Anil D'Silva)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
AMC ENTERTAINMENT HOLDINGS, INC. -1.97% 4.49 Delayed Quote.-37.98%
CINEWORLD GROUP PLC 0.36% 55.2 Delayed Quote.-74.90%
CITIGROUP INC. 0.00% 57.06 Delayed Quote.-28.58%
THE GOLDMAN SACHS GROUP, INC. -0.40% 236.54 Delayed Quote.3.29%
Latest news "Economy & Forex"
01:56pEuro zone to move on bailout fund reform amid COVID worries
RE
01:35pIMPERIAL MINERALS : 26 November 2020Issue of Equity
PU
01:33pCovid-19 Crisis Could Set Back a Generation of Women, U.N. Report Finds
DJ
01:32pCanada police supervisor denies effort to deceive Huawei CFO about indictment
RE
01:18pHungary, Poland double down to try to eject rule-of-law condition from EU budget
RE
01:18pPoland, Hungary moving deeper into isolation in EU - senior EU diplomat
RE
01:16pNEWS HIGHLIGHTS : Top Company News of the Day
DJ
01:16pNEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
01:13pVELOCYS : profiled in Biofuels International
PU
12:48pEU considering stopgap measure for UK financial services post Brexit, says EU diplomat
RE
Latest news "Economy & Forex"