AMC Theatres Says It Will Be Out of Cash by Early 2021

Either attendance needs to increase or largest U.S. movie exhibitor will need to borrow more money/renegotiate leases

amc theatres

AMC Entertainment says that unless things change, it will be out of cash by late 2020 or early 2021.

The largest U.S. movie-theater exhibitor laid out the grim news in an SEC filing on Tuesday.

Here is the key part:
“Given the reduced movie slate for the fourth quarter, in the absence of significant increases in attendance from current levels or incremental sources of liquidity, at the existing cash burn rate, the Company anticipates that existing cash resources would be largely depleted by the end of 2020 or early 2021. Thereafter, to meet its obligations as they become due, the Company will require additional sources of liquidity or increases in attendance levels. The required amounts of additional liquidity are expected to be material.”

Alternative methods to achieving liquidity including borrowing money, attempting to renegotiate theatre leases and simply hoping attendance levels are able to increase.

More to come…

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