AMC Theatres Bankruptcy Likely, Analysts Say
Published on Apr 09, 2020
AMC Theatres — whose business has effectively shut down because of the coronavirus pandemic — looks increasingly likely to file for bankruptcy with its cash reserves dwindling, according to Wall Street analysts.
In a report Thursday, Mkm Partners analyst Eric Handler wrote, “Based on our view that theatres will be closed until at least August and our belief that AMC lacks the liquidity to stay afloat until that time, we expect the company will soon be faced with filing for bankruptcy.” He downgraded AMC Theatres stock from “neutral” to “sell.”
AMC reported $265 million in cash and equivalents on hand, plus $332 million available via lines of credit, as of Dec. 31, 2019. “AMC is the exhibition company we view with the least financial flexibility,” Handler wrote in his report. “We believe the company’s monthly cash burn rate in a no-revenue environment is running at $155 million per month, which likely keeps AMC liquid until June/July.
Read full article at: Variety - Film News
Author: Todd Spangler and Rebecca Rubin