Another day, another bit of very bad news for the movie business.

The company, which is the world’s largest theater chain, said in public filings that it will raise $200 million in cash by allowing debt-holders to swap their securities at a discount. Even before the pandemic, AMC had amassed a great deal of debt to outfit its theaters with luxury seating, and to buy competitors such as Carmike and Odeon. Wall Street analysts last week downgraded the company’s stock from “neutral” to “sell,” signaling that the value of the nation’s largest theater chain is expected to diminish in coming months as there’s no clear path forward for multiplexes desperate to reopen. Without a cash infusion or additional restructuring, the money will dry up.
However, many insiders expect that a surge in COVID-19 infections may make that impossible.

Tenet failed to deliver at the box office which forced other major blockbusters like Black Widow to push well into 2021.

The company has been hit hard by coronavirus, which has forced it to shutter its chains, depriving it of income. The information comes from S&P Global, who recently reduced its credit rating for AMC Entertainment.

As part of the deal, the interest they receive would be either 10% in cash or 12% in additional notes that would be due in 2026. The company ended 2019 with more than $4.75 billion in corporate borrowings. © Copyright 2020 Variety Media, LLC, a subsidiary of Penske Business Media, LLC. AMC Theatres Is Expected to Run Out of Money in 6 Months. The company will review prior to the end of June 2020, in conjunction with the potential lifting of various government operating restrictions, whether it should extend such suspension with respect to some or all of our theaters. Many prominent filmmakers, along with the National Association of Theatre Owners, the Directors Guild of America and the Motion Picture Association are currently lobbying Congress to provide financial assistance to movie theaters. Given the level of attendance currently, it is expected that many movie theaters are losing money by being open.

Another day, another bit of very bad news for the movie business. “After giving effect to the proposed notes offering, we believe the company will have sufficient liquidity to withstand a global suspension of operations until a partial reopening ahead of Thanksgiving.”. © Watchr Media • All rights reserved.

The funds from the senior notes offering, which will have to be repaid in 2025, should be enough to keep the company going until the middle of the summer, AMC said in a filing Thursday. Leading U.S. movie theater operator AMC Entertainment Holdings was down by more than 11% for the day on the heels of a large decline in September, and Cinemark Holdings was lower by 12%. Oct. 16 will see the reopening of AMC CLASSIC Durham 15 and AMC CLASSIC Wilson 10. 1 theater chain isn’t going to reopen. Read Next: Gold House Movement Supports Filipina Drama ‘Yellow Rose’ — Film News in Brief, Grammys’ Spoken Word Race Could See Lana Del Rey and Colin Jost Face Off, Gov. Even though the chain has been able to reopen many of its locations in recent weeks to coincide with the releases of The New Mutants and Tenet, its financial outlook is dire and, barring a radical change, default is expected. The likelihood of a bankruptcy reorganization doesn’t mean that AMC’s 634 locations in the U.S. and Canada — and more than 1,000 venues worldwide — will be closing their doors for good. Facing the prospect of staying shut for several more months due to the coronavirus pandemic, embattled exhibitor AMC Entertainment has unveiled plans to raise $500 million in new debt to improve its balance sheet.

AMC is saddled with tremendous debt, said to be in the $5 billion range. AMC’s stock was up 37% to $3.35 a share in after hours trading Thursday as investors reacted to news of the offering and the White House announcing specifics of plans to re-open movie theaters. AMC Theatres reached a debt agreement on Friday that could help the heavily leveraged exhibition chain avoid or at least forestall a liquidity crisis. Another day, another bit of very bad news for the movie business. The remaining 11 AMC’s in North Carolina will reopen on Oct. 16. On Oct. 9, AMC’s in the Triangle including AMC Fayetteville 14, AMC DINE-IN Holly Springs 9, AMC Market Fair 15, AMC Park Place 16 and AMC DINE-IN Southpoint 17 will reopen. As the theater chain looks to reopen 100 of its locations on … The Guardian reports that AMC's Odeon is going to shut down a quarter of its UK cinemas during the week, moving to a weekend-only model amid a wave of virus cases and a dearth of new releases. AMC Theatres, the largest theater chain in the U.S., is now expected to run out of money within six months. Amazingly, AMC may actually be losing more money by having its locations open right now. Variety and the Flying V logos are trademarks of Variety Media, LLC.

Even so, S&P believes that the rate at which the company is burning through cash is untenable. This news comes to us via The Hollywood Reporter. Cuomo Not Budging on Movie Theater Closures: ‘We’re Still in a Pandemic’, Cinema Stocks Plummet After Cineworld Closes, ‘No Time to Die’ Gets Delayed, Clark Middleton, Actor in 'The Blacklist,’ ‘Twin Peaks,’ Dies at 63, ‘The Batman’ Delayed to 2022, ‘Matrix 4’ Release Moves Up, 'Teenage Bounty Hunters' Canceled After One Season at Netflix, Denis Villeneuve’s ‘Dune’ Delays Release Date, ‘GLOW’ Season 4 Canceled Due to COVID-19 Pandemic, ‘This Isn’t The Right Time’ For ‘No Time To Die,’ says Daniel Craig, Thomas Jefferson Byrd, Actor in Spike Lee Films, Killed in Atlanta, Why ‘Tenet’ Was the Wrong Movie at the Wrong Time (Column), Lady Gaga, BTS, Justin Bieber Lead 2020 MTV EMA Nominations, Bruce Lee’s Daughter Shannon Recalls His Struggle to Make ‘Enter the Dragon’ in New Book Excerpt (EXCLUSIVE), Led Zeppelin Wins 'Stairway to Heaven' Copyright Battle as Supreme Court Refuses to Hear Case, ‘The Witcher’ Season 2 Gets First Look at Henry Cavill’s New Armor, Megan Thee Stallion Delivers Powerful 'Protect Black Women' Statement on 'SNL', Why ‘Tenet’ Was the Wrong Movie at the Wrong Time (Column), The 10 Best ‘Gilmore Girls’ Music Moments, Taylor Lautner Buys Striking Agoura Hills Mansion, Chaos and Cannabis: A Hemp Empire Brings Trouble to Navajo Land, AddArmor Transforms the Mercedes-Benz Sprinter Van Into a Personal Bodyguard, Big Four Broadcast Rights Pacts Becoming ‘Loss Leaders’ for Networks, A Tea-Lover’s Guide to the Best Tea Brands in the World.
AMC Theatres, the largest theater chain in the U.S., is now expected to run out …

There is no guarantee however, that any such government-imposed restrictions may be lifted, and such restrictions may be further extended beyond June 2020.”.

AMC Theatres has just endured one of the most traumatic periods in its hundred-year history. That illustrates the truly bleak situation the exhibition side of the movie business finds itself in right now. AMC Theatres, the largest theater chain in the U.S., is now expected to run out of money within six months.Even though the chain has been able to reopen many of its locations in recent weeks to coincide with the releases of The New Mutants and Tenet, its financial outlook is dire and, barring a radical change, default is expected.

As such, raising more capital, especially when the outlook of the business isn't particularly great, does feel unlikely. Read Next: Oscar Winner Kristof Deak Starts Shooting Feature Debut ‘The Grandson’ (EXCLUSIVE), Milla Jovovich’s Thriller ‘Monster Hunter’ Moves Forward to 2020, Gold House Movement Supports Filipina Drama ‘Yellow Rose’ — Film News in Brief, Andy Samberg, Common, Craig Robinson to Star in Comedy ‘Super High’, Clark Middleton, Actor in 'The Blacklist,’ ‘Twin Peaks,’ Dies at 63, ‘The Batman’ Delayed to 2022, ‘Matrix 4’ Release Moves Up, 'Teenage Bounty Hunters' Canceled After One Season at Netflix, Denis Villeneuve’s ‘Dune’ Delays Release Date, ‘GLOW’ Season 4 Canceled Due to COVID-19 Pandemic, ‘This Isn’t The Right Time’ For ‘No Time To Die,’ says Daniel Craig, Thomas Jefferson Byrd, Actor in Spike Lee Films, Killed in Atlanta, Why ‘Tenet’ Was the Wrong Movie at the Wrong Time (Column), Lady Gaga, BTS, Justin Bieber Lead 2020 MTV EMA Nominations, Bruce Lee’s Daughter Shannon Recalls His Struggle to Make ‘Enter the Dragon’ in New Book Excerpt (EXCLUSIVE), Led Zeppelin Wins 'Stairway to Heaven' Copyright Battle as Supreme Court Refuses to Hear Case, ‘The Witcher’ Season 2 Gets First Look at Henry Cavill’s New Armor, Megan Thee Stallion Delivers Powerful 'Protect Black Women' Statement on 'SNL', Why ‘Tenet’ Was the Wrong Movie at the Wrong Time (Column), The 10 Best ‘Gilmore Girls’ Music Moments, Taylor Lautner Buys Striking Agoura Hills Mansion, Chaos and Cannabis: A Hemp Empire Brings Trouble to Navajo Land, AddArmor Transforms the Mercedes-Benz Sprinter Van Into a Personal Bodyguard, Big Four Broadcast Rights Pacts Becoming ‘Loss Leaders’ for Networks, A Tea-Lover’s Guide to the Best Tea Brands in the World. © Copyright 2020 Variety Media, LLC, a subsidiary of Penske Business Media, LLC.

“Due to significant actions taken by the company, we believe our current cash balance is sufficient to withstand a global suspension of operations until a partial reopening in July,” AMC said.

There is a growing sense that movie theaters as we know them may not survive without some sort of help from the government. Under the deal, Silver Lake Group will purchase $100 million in first lien notes, adding to the $600 million in convertible bonds that it already holds in AMC. Variety and the Flying V logos are trademarks of Variety Media, LLC. S&P, further, expresses that their negative outlook is based on their view that default is all but inevitable. Here's what they had to say. Under the deal, Silver Lake Group will purchas… It is banking on coronavirus infection rates falling sufficiently, so it can start reopening, and it is hoping that the new cleaning and safety measures it has implemented will give consumers the confidence they need to return to cinemas. AMC Theatres reached a debt agreement on Friday that could help the heavily leveraged exhibition chain avoid or at least forestall a liquidity crisis. AMC said renegotiating its debt will help it manage to stay solvent through 2021. AMC Theatres Just because Warner Bros. took Christopher Nolan’s Tenet temporarily off the release schedule doesn’t mean that the No. In June, AMC acknowledged that coronavirus, which forced it to shutter its more than 1,000 theaters, and lay off or furlough 600 employees, could push it into bankruptcy. Cineworld Temporarily Closes All Regal Theaters in the U.S. Cineworld Cinemas May Close All Regal Theaters in the U.S. AMC’s stock was up 37% to $3.35 a share in after hours trading Thursday as investors reacted to news of the offering and the White House announcing specifics of plans to re-open movie theaters. AMC has been restructuring its debt to avoid bankruptcy and attempting to raise cash to stay afloat. The debt renegotiation may clean up its balance sheet and help AMC avoid a Chapter 11 bankruptcy, but the theater chain still faces significant challenges. While other chains like Cinemark and Regal are certainly not thriving right now they don't seem to be in as much trouble, at least not so immediately.

AMC said that it hoped to re-open this summer when major releases such as “Tenet” and “Mulan” are expected to play in theaters.

Amid AMC's ongoing financial troubles there were rumors earlier this year that Amazon was possibly looking to buy the chain.

There does not seem to be much hope for AMC, as it stands. Following James Bond Delay, Cinemark Is Offering Private Blu-Ray Watch Party Movie Theater Rentals, How the Pandemic Is Changing the Movie Business, an Insider Explains [Exclusive], Tenet Wins 4th Consecutive Weekend at the Box Office with $3.4M, Drew Barrymore Repsonds to SNL Parody of Her New Talk Show, Burt Gummer Announces Presidential Run Ahead of Tremors: Shrieker Island Release, 2500-Year-Old Mummy Dug Up in Egypt Along with 59 Sealed Coffins, Someone Call Brendan Fraser.

S&P Global has downgraded AMC Entertainment's credit rating providing a grim outlook for the theater chain. UPDATED: A court allowed AMC Theatres on Friday to reacquire 10 theaters it had divested as part of the Carmike Cinemas merger, after the new operator was forced to liquidate due to the COVID-19 pa… Theaters rely on these big movies to put meat in seats. Though the rumors dried up rather quickly.