Unless there is an increase in film attendance or an injection of money, AMC Entertainment warned Tuesday that it could be under bankruptcy protection, according to a securities and exchange commission file.
The presentation involved a new percentage to be provided with Citigroup and Goldman Sachs, where it will sell up to 15 million percentages as a component of a percentage to be offered on the market.
The offer of an ATM allows AMC, at its discretion, to sell new shares directly to the market to take advantage of possible fluctuations in the value of its shares, rather than promoting a giant block of shares to institutional investors.
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However, despite the reopening of cinemas, few people venture into home entertainment. According to AMC, as of October 16, attendance at the same theaters has declined by 86% compared to last year.
For the third quarter, AMC expects to report profits of $119. 5 million, a marked drop from third quarter earnings of $1. 32 billion.
“Because of these factors, as noted above, there is great doubt about the Company’s ability to continue operating for a moderate time era,” AMC warned, adding that “in the event of long-term liquidation or bankruptcy proceedings, the company’s non-unusual stock holders would likely suffer an overall loss of their investment. “