Pennsylvania is the latest state to yet again close movie theaters in response to the COVID-19 pandemic.. The first question may asked was, where in the world are movie theater even still open at!?
Regal has been shuddered for months.. AMC is constantly teetering as new flicks don’t come out and people don’t go to in door screenings..
The situation is bleak and getting worse.
The death of theaters could be taking place before our eyes..
And now AMC warns that it only has enough cash in hand to get it through January 2021!
In an SEC filing, the nation’s biggest exhibitor also announced cash injection of $100 million in a debt sale to Mudrick Capital Management, at an annual interest rate of 15%. Mudrick will exchange its notes for about 13.7 million AMC shares. The chain has sold stock recently as well. It said it’s negotiating with landlords, creditors and potential joint venture partners on ways to make it through the pandemic and is in discussions regarding potential financing alternatives for its international businesses.
And more,
AMC estimate that if its attendance levels do not significantly improve during the first half of 2021 (to achieve an overall level of approximately 20% of pre-COVID 2019 attendance levels) and again during the second half of 2021 (to achieve an overall level of approximately 85% of pre-COVID 2019 attendance levels), the believe the liquidity shortfall would be greater than the estimated $750 million minimum shortfall noted above, “which if not addressed would prevent us from continuing as a going concern.”
Stocks increased this week for AMC on the news because it means someone could buy them. Money men know how to keep and share their money.
THIS WAS GOING TO BE A BIG YEAR
WONDER WOMAN 1984 and GHOSTBUSTERS were among so many movies slated to set records in 2020.. This was going to be a major year for Hollywood studios..
Instead a virus not only destroyed the restaurant industry but also just about every form of entertainment in the United States.
As of last month, 404 of AMC’s 594 U.S. theaters are open and operating at reduced capacity.
Attendance has dropped 92% since this time last year…
And with that attendance drop, closures, and restaurant industry collapse, the virus has continued to spread anyway..
x x x
DEVELOPING..