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As the coronavirus pandemic (COVID-19) nears the end of a year and movie show chains have been closed for almost as long, the two largest movie chains in the United States are taking drastic action to stay afloat. AMC Theaters and Regal Cinemas have both taken steps to ensure they will stay at least a few more months. But it remains to be seen whether that will be enough.
AMC Theaters maintains bankruptcy in Bay
AMC Theaters is the world’s largest movie theater chain, but it was on the verge of bankruptcy even before the pandemic wreaked havoc on its finances. But the company managed to raise $ 917 million in new equity and debt, AMC Theaters (via Variety) said on Monday, calling it enough cash to “ get through this dark, coronavirus-hit winter, adding that its “ financial track has been extended until 2021. ”
In addition, the company has signed letters of commitment for $ 411 million of additional equity in place until mid-2023, unless repaid before then, by increasing and refinancing its revolving credit facility. European.
But despite this temporary interim measure, the CEO of AMC Adam aron hopes more than ever that the theater chain can bounce back, especially with the ongoing dialogues with theater owners and the rollout of vaccination. Aron said in a statement:
“Today the sun is shining on AMC. After securing over $ 1 billion in liquidity between April and November 2020, through equity and debt raising as well as a modest amount of asset sales, we are proud to announce today hui that over the past six weeks, AMC has raised an additional capital injection of $ 917 million. to strengthen and solidify our liquidity and financial position. This means that any discussion of impending bankruptcy for AMC is completely irrelevant. “
Regal Cinemas joins the club in release offers
Meanwhile, Regal Cinemas, the number two channel in North America, is joining with AMC and other movie chains like Cinemark Holdings and Cineplex in making deals with Hollywood studios to shorten theatrical release windows. In a New York Times report, it was revealed that Regal was “now in talks with Universal for a similar arrangement”.
It’s a major change of heart for Mooky Greidinger, the owner of Regal Cinemas, who at the time of the AMC deal between Aron and Universal, criticized it as “the wrong decision at the wrong time”, saying people would hesitate to buy tickets if they could see the same movie in their bedroom life a few weeks later.
But AMC apparently went one step further, according to the report, conceding to Warner Bos. exit day and date of the next Denzel Washington with The small things, with the channel playing movies without an exclusive theatrical window. With Regal joining the club on this sort of deal, it’s likely that the theatrical release window will be forever changed from now on, even after the pandemic.
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