The film industry is another part of life being dramatically reshaped in response to the ongoing COVID-19 pandemic.
AMC Theatres, the world’s biggest cinema chain, has raised a $917-million cash infusion from investors, reports CBS News.
“This increased liquidity should allow the company to make it through this dark coronavirus-impacted winter,” the company said, adding that its “financial runway has been extended deep into 2021.”
“This means that any talk of an imminent bankruptcy for AMC is completely off the table,” CEO Adam Aron said in a said.
More than half of the money comes from $506 million from investors who purchased AMC shares during the company’s stock offering. However, the excess amount is from a $411 million line of credit.
The movie company predicts the $917 million will keep its theaters open into 2021. If moviegoers return and landlords lower their rent payments, AMC will make it through 2021.
Aron says the extra funding means “the sun is shining on AMC.”
He also mentioned how fast the COVID-19 vaccine rollout would most likely decide the company’s fate.
“We are going to need for much of the general public in the U.S. and abroad to be vaccinated,” Aron said. “To that end, we are grateful to the world’s medical communities for their heroic efforts to thwart the COVID virus.”
The movie market re-opened in late summer in the United States after months of mitigation efforts due to the coronavirus pandemic.
In October, AMC Theatres announced that due to the “reduced movie slate for the fourth quarter,” its existing cash resources will be “largely depleted” by the end of the year or early next year.