-->

Bankruptcy halted for AMC with new equity, debt capital

Leawood-based AMC Entertainment Holdings said it has successfully raised or signed commitment to receive $917 million of new equity and debt capital since mid-December 2020. The added liquidity is said to allow the company to hold on longer through COVID-19.

Bankruptcy appears to be out of the question for AMC Entertainment Holdings Inc., according to CEO Adam Aron in a Monday news release.

The release said the theater chain has raised more than $900 million in new capital since mid-December 2020, successfully raising or gaining signed commitment letters to receive $917 million in new equity and debt capital since Dec. 14.

Of that money, $506 million has come from the issuance of 164.7 million new shares of common stock and commitment letters for $411 million of debt capital. The company estimates it now has enough liquidity to continue operating well into 2021.

AMC has struggled to avoid bankruptcy since being forced to close its roughly 1,000 theaters worldwide in March 2020 due to COVID-19. Since then, AMC has come close to bankruptcy four times in the past nine months, according to The New York Times.

Aron said in Monday’s release that AMC will need to see more of the public, worldwide, to be vaccinated if it is to “succeed over the medium term.”