AMC said renegotiating its debt would help it remain solvent until 2021. The company was hit hard by the coronavirus, which forced it to close its channels, depriving it of income. Even before the pandemic, AMC had accumulated a lot of debt to equip its theaters with luxury seats and buy competitors such as Carmike and Odéon. The company ended 2019 with more than $ 4.75 billion in corporate borrowing. In June, AMC acknowledged that the coronavirus, which forced it to close its more than 1,000 movie theaters and fire or fire 600 employees, could bankrupt him.
Debt renegotiation could clean up its balance sheet and help AMC avoid a Chapter 11 bankruptcy, but the theater chain still faces significant challenges. He is banking on a sufficient drop in coronavirus infection rates so that he can start reopening, and he hopes that the new cleaning and safety measures he has implemented will give consumers the confidence they need to go back to the movies.
Christopher Nolan’s “Tenet” and Disney’s “Mulan” live remake are key elements of this strategy and are expected to open in August. However, many insiders expect that an increase in COVID-19 infections may make this impossible.