AMC Theatres Has “Substantial Doubt” About Staying in Business
AMC Theatres, the world’s largest movie theater chain, said it has “substantial doubt” over whether it can remain in business following the COVID-19 pandemic. The Leawood, KS-based company suspended operations at all 630 U.S. theatres in mid-March and is projecting first-quarter losses of up to $2.4 billion.
“We believe we have the cash resources to reopen our theatres and resume our operations this summer or later,” the company said in a regulatory filing. “Our liquidity needs thereafter will depend, among other things, on the timing of a full resumption of operations, the timing of movie releases and our ability to generate revenues.”
If AMC doesn’t resume operations within its estimated timeline, “we will require additional capital and may also require additional financing if, for example, our operations do not generate the expected revenues or a recurrence of COVID-19 were to cause another suspension of operations,” according to the filing.
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