AMC Entertainment is on the verge of collapse. The largest chain of cinemas in the world needs $ 750 million to ensure its survival. Otherwise, it might be bankrupted. The company has been provided with some air by a capital injection of $ 100 million from Mudrick Capital but it isn’t enough.
AMC has around a thousand standalone cinemas worldwide and accounts for more than 11,000 cinema screens worldwide. Through the Odeon chain AMC is also active in 14 European countries. Without new money, AMC’s cash register will be empty next month.
To stay viable next year, the company wants to issue more shares. It would also look at European lenders and talk to potential investors. AMC negotiates, inter alia, with landlords for deferral or cancellation of obligations.
Cinema chains worldwide are hit hard by the crisis. In several countries, movie halls were forced to close by lockdown rules. In addition, the number of visitors declined because visitors did not want to take a risk of becoming infected. The situation became even worse when film studios decided to postpone major film releases, which meant that even more customers were lost.
AMC sees the visitor flow in the fourth quarter of this year falling by 92 percent compared to a year earlier. Earlier it was decided to close a number of cinemas. In major cities like New York and Los Angeles, it has not yet been possible to reopen cinemas.