THE END OF CINEMA? Giant chain can declare BANKRUPTCY and competitor’s shares fall 30%
The actions of the cinema and marketing network of AMC fell sharply on Monday (22), where a drop of more than 30% was seen in premarket trading, based on a loss of more than 26% last week.
This drop happened when the market rival Cineworld – which controls the network Regal Cinemas – said he is considering filing for bankruptcy. after the Cineworld released a warning about its liquidity position last week, the CEO of AMC, Adam Aronsaid in a statement that “we remain confident about the future of AMC” and that the company was “very optimistic” about movies coming in Q4 and 2023.
Even though 2022 featured big hits like ‘Top Gun: Maverick‘, and studio execs signal interest in returning to theaters rather than streaming-only releases, the US box office remains well below what we had before the pandemic.
THE AMC reported more than $5 billion in long-term debt at the end of the second quarter. This total rises to more than $10 billion when including lease obligations and other long-term liabilities.
“Remember, with APE seeing its first trade on the NYSE tomorrow morning, the value of your investment in AMC will be the combination of your AMC shares and your new APE units. One AMC share plus one new APE unit added together – compared to just one AMC share previously,” he said. aron on twitter.
The recent drop in AMC shares coincides with the sharp reversal of Bed Bath & Beyond. The company is down more than 40% on Friday after activist investor Ryan Cohen revealed that he sold his entire stake in the company.
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