AMC Entertainment Holdings Inc (NYSE: AMC) revealed in an SEC filing it is no longer in danger of bankruptcy after securing USD917 Million in financing. The funds assure that the company can remain open and functional throughout 2021.
“This means that any talk of an imminent bankruptcy for AMC is completely off the table,” said CEO Adam Aron.
The cinema’s shares skyrocketed about 50% during premarket trading and remained up 35% to USD4.75 by 8:40 a.m.
Approximately USD500 Million of the raised capital was secured from the issuance of new common shares as well as an investment deal with Mudrick Capital Management. Furthermore, the movie theater chain has carried out commitment letters for USD411 Million of additional funds from upsizing and refinancing its European revolving credit facility.
“Looking ahead, for AMC to succeed over the medium term, we are going to need for much of the general public in the U.S. and abroad to be vaccinated,” Aron said. “We welcome the commitment by the new Biden administration and of other governments domestically and internationally to a broad-based vaccination program.”
Amid the ongoing coronavirus pandemic, AMC is preparing for the worst case scenario and is seeking additional sources of liquidity for any future occurrences.