Movie theater giant AMC Entertainment Holdings Inc. signed deals for $917 million in financing to survive the Covid-19 pandemic for months longer without resorting to bankruptcy, the company said Monday.
AMC, the world’s largest movie theater chain, said it had executed a commitment letter for $411 million in debt financing through increasing the size of and refinancing a European credit facility while raising $506 million in equity since mid-December.
“This means that any talk of an imminent bankruptcy for AMC is completely off the table,” said Chief Executive Adam Aron. The company had warned about its risk of bankruptcy since late last year.
With the deals, AMC said its financial runway has now been extended deep into 2021 and that while an increase in cinema attendance seems likely, the future course of the coronavirus means the company’s cash needs remain uncertain.
“Investors are cautioned accordingly,” AMC said.
