What just happened? AMC Entertainment is teetering on the edge of bankruptcy. In a filing with the US Securities and Exchange Commission on Friday, the company said it has entered into a debt purchase agreement that’ll bring in $100 million in cash. In the absence of additional liquidity, however, AMC said it expects that its existing cash resources will be depleted during January, 2021.
To remain afloat through 2021, AMC estimates it will need approximately $750 million in additional money. Again, that’s just an estimate based on multiple assumptions that could vary including the ongoing uncertainty surrounding the pandemic.
As of November 30, AMC was operating 404 of its 594 US theaters and only 108 of its 359 leased and partnership international theaters, both with limited seating capacity and during limited opening hours.
AMC is also being impacted by Warner Bros.’ controversial decision to release its 2021 films through HBO Max on the same day they debut in theaters. AMC in its filing said the move could result in other studios adopting a similar strategy.
Warner Bros.’ decision also provoked the ire of director Christopher Nolan who blasted the studio and HBO Max. Other directors, including James Gunn and Denis Villeneuve, are also reportedly upset with the dual release plans.