AMC Entertainment is exploring raising more capital, including through yet another possible stock sale, to weather the Covid-19 pandemic and take advantage of this week's rally in its shares, people familiar with the matter said on Thursday.
The world's largest movie theater chain, with about 1,000 cinemas worldwide, suffered unprecedented turmoil after the pandemic last year forced it to temporarily close many venues while attendance dropped at those that remained open. AMC staved off bankruptcy through a debt restructuring deal last summer with its creditors and private equity firm Silver Lake, and a series of other financial transactions in recent months.
AMC said on Monday it had raised $917 million since mid-December through equity and debt issues. "This means that any talk of an imminent bankruptcy for AMC is completely off the table," Chief Executive Adam Aron said in a statement accompanying disclosure of the additional funds.
On Wednesday, AMC said it raised an additional $304.8 million by selling shares this week, cashing in on an unprecedented social media-driven rally powered by amateur traders taking on hedge funds that had shorted its shares.
On Thursday, it said Silver Lake and other creditors decided to convert debt holdings to equity in a transaction expected to reduce AMC's obligations by $600 million.