The company said it has two ways out of its cash crisis: Either more customers need to buy tickets, or it will have to find new ways to borrow money.
Boosting liquidity won’t be easy without a return to business-as-usual. It’s exploring additional debt financing, renegotiations with landlords, and even potential sales of assets. But AMC threw cold water on those options.
“There is a significant risk that these potential sources of liquidity will not be realized or that they will be insufficient to generate the material amounts of additional liquidity that would be required until the company is able to achieve more normalized levels of operating revenues,” AMC said.
AMC’s stock fell about 6% Tuesday.
The news of AMC’s cash crunch comes as the movie theater industry is struggling to survive during the pandemic.
Since shutting their doors in March, theaters have tried to reopen and do so with health measures to help curb the virus’s spread. Yet, the industry hasn’t been able to get back on its feet.
Despite these challenges, AMC has said it will remain open. However, after Tuesday’s filing, we now know that it can likely only do so for a few more months.