AMC's move to raise fresh capital comes after ratings agency S&P said earlier this month that the company had just six months of cash reserves. "In the event the Company determines that these sources of liquidity will not be available to it or will not allow it to meet its obligations as they become due, it would likely seek an in-court or out-of-court restructuring of its liabilities," AMC said in a filing. Big theater chains, including AMC and Cineworld Group <CINE.L>, have reopened many of their locations, but fears of the virus and delays in major releases have kept audiences at bay.
AMC joins Cinemark in making screens available for private hire, after pandemic shutdowns have devastated the box office.
AMC (AMC) shares moved sharply lower after third quarter revenue guidance came in below expectations at $119.5 million.