AMC Entertainment is back on track after acquiring more than $900 million since they started securing funds last December. The news coming in from the stock market shows that the shares of AMC have skyrocketed.
This means that AMC will not file for bankruptcy in 2021. The CEO Adam Aron believes that bankruptcy is completely off the table.
They were in debt and were not able to secure themselves against the possible bankruptcy. But the entire situation changed after they started raising money – in December – in new equity and debt capital.
AMC Entertainment issued $500 million of shares in the market and was able to gain investment money from this public offering. Similarly, they managed to secure more than $400 million in debt capital through refinancing through the European revolving credit facility.
When the company managed to acquire more than $900 million in investments, the investors showed interest in this company. AMC shares plummeted, after the news about their $900 million in equity and debt financing, broke out.
Many businesses were disturbed by the coronavirus-induced lockdowns in the US. AMC Entertainment also met the same fate. The theaters are now open.
AMC Entertainment lost its share value by over 48% in the last year, a huge percentage considering the stock market crash. Another reason for the crash in the entertainment industry relates to the fact that people are hesitant to go back to the theaters, because of the coronavirus.
The situation was completely different because of the persistent threat of COVID-19. The people were more comfortable while watching the movies at their homes – using different streaming services – at a nominal cost.
The United States of America is constantly fighting coronavirus but still, the number of cases continues to surge. They are going to increase their vaccination facilities so that more people can be vaccinated.