AMC says bankruptcy is off the table after raising over 900 million

AMC shares skyrocketed on Monday after the company revealed it had secured enough funding to remain open and operational until 2021.

“This means that any discussion of impending bankruptcy for AMC is completely irrelevant,” said CEO Adam Aron.

Since Dec. 14, the world’s largest movie theater chain has raised $ 917 million in new equity and debt, the company revealed Monday in an SEC filing.

Approximately $ 500 million of this fundraising came from the issuance of new common shares and an investment transaction with Mudrick Capital Management. The company also signed letters of commitment for $ 411 million in additional equity from the increase and refinancing of its European revolving credit facility.

The company’s shares rose more than 35% in pre-market trading. The stock is down 48% in the past year, bringing its market value to $ 564 million.

“Going forward, for the CMA to be successful in the medium term, we’re going to need a large portion of the general public in the United States and abroad to get vaccinated,” Aron said. “We welcome the commitment of the new Biden administration and other national and international governments to a comprehensive immunization program.”

Cinemas have been hit hard by the pandemic. First, they were closed due to the increase in cases, and then when they reopened, moviegoers were reluctant to return. Cinemas are hoping that an influx of new content from Hollywood, a drop in Covid-19 cases and an increase in vaccinations will give consumers the confidence to come back.

So far, around 21 million vaccines have been administered. However, the United States still records at least 170,000 new cases of Covid-19 and at least 3,080 virus-related deaths each day, based on a seven-day average calculated by CNBC using data from the Johns Hopkins University.

Last week there was a series of movie delays. The latest James Bond film, MGM’s “No Time to Die,” was pushed from April through October, Sony’s “Ghostbusters: Afterlife” moved to November, and Sony’s “Morbius” and “Uncharted” were released. in 2022.

Disney also moved a half-dozen films, including “The King’s Man,” later in the year or removed them from the schedule entirely.

The few films that remain in February and March relate to streaming releases. Warner Bros. ′ “Tom and Jerry” hits HBO Max and theaters on February 26, Disney’s “Raya and the Last Dragon” will debut in theaters and on Disney + for $ 30 on March 5, and Warner Bros. ′ “Godzilla v. Kong “hits HBO Max and theaters on March 26.