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Time is running out for AMC Entertainment Holdings (NYSE: AMC). The film operator has raised two hundred million dollars in capital, but still wants $550 million to survive.
In an interview with CNBC on Tuesday, CHIEF Adam Aron said, “We want to raise more, but we’re working hard to make it and we have a plan and a plan. Whether we do it or not, only time will tell. “
Time is on the side of AMC. The theater owner tries to hold on until film studios begin releasing films this year after their releases were delayed due to the coronavirus pandemic, leaving AMC with little or no income.
This left AMC in a deep vacuum, as it incurred large debts after a frenzy of acquisitions, buying Carmike Cinemas and Odeon. He also went into debt to renovate his cinemas before the pandemic, equipping them with luxury seating. billion in debt and $418 million in cash.
Last month, he filed an application to sell two hundred million shares and then filed an application to sell another 50 million shares in order to raise cash. He controlled it to convince one of his lenders to give him $100 million, but at that point he needed another $750 million. Aron says the theater owner has raised a total of $200, but time is running out.
“We want to raise more cash to move to the other side,” Aron said. “That said, we’ve done it four times already, and that’s our pass. “
With some AMC lenders ingsing him to file for bankruptcy, the theater owner would possibly have gone to the well too often.