In this news, we discuss the AMC faces cash crunch, may have to reorganize debt.
(Reuters) – AMC Entertainment Holdings Inc, the world’s largest theater chain, on Tuesday warned of a cash flow crunch and said it may have to opt for a debt restructuring in court if it doesn’t there were no sources of cash.
The company, whose shares have fallen nearly 4% in pre-market trading, said it expects its cash resources to be largely depleted by the end of this year or early 2021. .
As big theater chains such as AMC Entertainment, rival Cineworld Group and others have reopened many locations, audiences have been scant due to virus fears and delays in major studio releases. Small and medium-sized theater companies have said they may not survive the impact of the pandemic.
Earlier this month, AMC announced that more than 80% of its theaters in the United States would remain open. Despite this, the number of people visiting its theaters has fallen 85% from a year ago, since it reopened after locks were relaxed, the company said.
“There is substantial doubt about the ability of the company to continue in business for a reasonable period of time,” AMC said in a statement Tuesday. (bit.ly/35jXM6t)
Report by Akanksha Rana in Bengaluru; Edited by Ramakrishnan M. and Shounak Dasgupta
Original © Thomson Reuters