Yahoo Finance AMC Jumps After Raising Nearly $1 Billion in Cash
Investing.com -- AMC Entertainment Holdings Inc (NYSE:AMC) shares jumped 30% on Monday after the company said it raised $917 million in cash since December, enough to stave of a bankruptcy for now.
The largest movie theater operator has been reeling from pandemic-related closures and restrictions. Shares are down 32% in the last year. On Monday, Goldman Sachs (NYSE:GS) analysts said U.S. box office sales fell 82% last year, to $2.1 billion, and most of the sales came in the first quarter.
AMC's CEO Adam Aron said in a statement on the company's website that "today, the sun is shining on AMC." The fundraising, including a $400 million loan for its Europe operations announced Monday and a combination of debt and equity sales, comes after AMC raised $1 billion from April to November last year. Aron said "any talk of an imminent bankruptcy for AMC is completely off the table.”
AMC raised the possibility of exploring bankruptcy last fall when it revealed it was burning through cash and could run out early this year. That was before the fundraising spree.
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