The company said it had two ways to overcome its cash crunch: either more customers needed to buy tickets, or it would have to find new ways to borrow money.
Increasing liquidity will not be easy without the return of business. It is exploring additional debt financing, rebirth with landlords and possible sale of property. But AMC threw cold water on those options.
“There is a significant risk that these potential sources of liquidity will not be realized or that they will be insufficient to generate a physical amount of additional liquidity that will be necessary until the company is able to achieve a more generalized level of operating revenue Ho, “said AMC.
AMC’s stock fell nearly 6% on Tuesday.
The news of AMC’s cash crisis comes as the movie theater industry struggles to survive during the epidemic.
Since closing its doors in March, theaters have tried to reopen and do so with health measures to help prevent the spread of the virus. Nevertheless, the industry has not been able to get back on its feet.
Despite these challenges, AMC has stated that it will remain open. However, after Tuesday’s filing, we now know that it can only do so for a few more months.