AMC Warns of Cash Shortfall by Year-End, Sparking Share Drop (1)

Oct. 13, 2020, 5:52 PM

AMC Entertainment Holdings Inc. said it may soon run out of cash amid fresh signs that the pandemic is pushing cinema operators close to default.

The world’s biggest theater chain said in a filing Tuesday that liquidity will be largely depleted by the end of this year or early next year if attendance doesn’t pick up, and it’s exploring actions that include asset sales and joint ventures. AMC’s shares sunk to the lowest since April.

“Bankruptcy is an almost foregone conclusion,” CreditSights analyst Matt Zloto said in an interview. “The writing is on the wall.”

A representative for AMC didn’t ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.