AMC Entertainment Holdings said on Friday it will get $100 million as an investment from Mudrick Capital Management, a shot in the arm for the cash-strapped movie theater operator struggling with delayed Hollywood releases and theater closures.
The world’s largest theater operator said it would need at least $750 million of additional liquidity to fund its cash requirements through next year. (https://bit.ly/3m9zFNS)
AMC estimated its cash and cash equivalents amounted to about $320 million at Nov. 30, and in the absence of additional liquidity it anticipates existing cash resources will be depleted during January next year.
The company said it would renegotiate its rent payments with landlords, seeking reductions, abatements and deferrals.
Theater chains across the world have been devastated by the COVID-19 pandemic, with many forced to lay off workers and borrow funds to stay afloat. From Oct. 1 to Nov. 30, AMC said overall attendance at its U.S. theaters declined about 92% compared to a year earlier.
“We are in discussions regarding potential financing alternatives for our international businesses, relying on permitted borrowing capacity under our £100 million European credit facility”, the company said in a regulatory filing.
AMC said the pandemic-induced challenges have been aggravated by the announcement from Warner Bros studio that it would debut all its 2021 films in theaters and on the HBO Max streaming service on the same day, adding that it may result in other studios following suit.
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