AMC Cut After Loop Says Bankrupty ‘a Distinct Possibility’

AMC Entertainment Holdings was downgraded to sell from hold at Loop Capital Markets, the latest firm to warn about liquidity issues as the pandemic keeps movie theaters closed. Shares down 8.9% pre-market.

• “AMC was over-levered going into the 100-year storm,” and given the current environment, it “either runs out of cash or requires a highly-dilutive financing”
  • “Bankruptcy is a distinct possibility”
• Analyst Alan Gould expects that theaters will be closed “for the entirety of the second quarter and will have a soft reopening in the third quarter,” providing a major headwind to revenue
• PT cut to a Street-low of $1 ...