KANSAS CITY, MO. (CelebrityAccess) — AMC Theatres, the largest cinema chain in the world, announced on Friday that it had secured an infusion of new capital as it tries to survive the coronavirus pandemic.
In financial filings on Friday, AMC said it received a commitment of $100 million by mid-January from rom New York-based Mudrick Capital Management. As well, Mudrick will convert an additional $100 million of AMC’s outstanding debt into the theatrical presenter’s common stock.
However, that may not be enough. In the same filing, AMC warned investors that in the absence of additional liquidity, the company will burn through its existing cash reserves by the end of January 2021. To remain viable, AMC projects that it needs at least $750 million in additional liquidity.
Even then, AMC stated that due to the ongoing uncertainty as to when movie fans might return to theaters in sufficient numbers, “substantial doubt” remains about AMC’s ongoing viability as a going concern.
According to AMC, the company is targeting a return to 20% of pre-COVID (2019) attendance in the first half of 2020, and then 85% in the second half to keep its liquidity shortfall from exceeding the previously cited $750 million.
AMC also noted that the impact of Warner Bros. recent announcement that it plans to release its entire movie slate for 2021 direct to its HBO Max video on demand streaming service on the same day the film is released in cinemas.
Other major players, including Disney, are weighing similar plans, according to media reports.