Wall Street analysts are indicating that AMC Theatres, the biggest cinema chain in the United States, looks increasingly likely to file for bankruptcy.
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.”
AMC’s business has effectively shut down because of the coronavirus pandemic and its cash reserves are said to be dwindling, though the elimination or deferral of monthly rent payments could double the number of months that AMC could survive without any revenue.
Even if AMC is able to tap government bailout funds, the company’s $4.75 billion in debt makes a reorganisation likely.
Source: Variety
