AMC Theatres raised $917 million to fend off bankruptcy

The world's movie theatres are definitely facing an existential crisis. Every few years, due to various circumstances we hear about the looming "death" of theatres. Yet the pandemic made things harder, capturing the sector which was already fending off risks and dragging it into smithereens.

AMC Entertainment, the 100-year-old owner of the world's largest theatre chain is running out of cash as there is no new film release in the theatres because of the on-going pandemic.

In an SEC filing on December 11, AMC Theatres reported that the company is going to be out of cash by January.

But, after gathering $917 million in fresh funding, AMC Entertainment Holdings Inc. is no longer at risk of an impending bankruptcy filing, continuing its battle to fend off the consequences of Covid-19 on its theatre business.

AMC, the largest movie theatre operator in the world, reported that it had completed a $411 million debt funding pledge letter by expanding the capacity of a European credit facility and refinancing it, thereby raising $506 million in equity since mid-December.

In New York markets Monday, the world's biggest movie chain's stock jumped as much as 37 percent and rose 23 percent to $4.33.

While many moviegoers are still apprehensive of returning to theatres in general, AMC Theatres recently agreed by promising a bargain price for private theatre rental. AMC will now let you stream new theatrical releases and older classics with your friends starting at $99.

But even so, in reality, AMC Theatres are for borrowed time and they aren't the only ones.

Cineworld closed all of its U.S. Regal Cinemas locations (except a few main locations in California) because of pandemic hit crises and B&B Theatres, the United States' sixth largest theatre chain, has confirmed that if nothing changes, they're months away from applying for bankruptcy protection.

According to the news reports, Warner Bros. will unleash their entire 2021 movie line-up simultaneously in theatres and on HBO Max, including big titles such as Wonder Woman 1984, Dune, The Matrix 4, and In the Heights.