Movie theater chain AMC said it would raise $500 million in debt to be able to survive the Coronavirus pandemic and economical shutdown. AMC has been shut down for almost 5 weeks now.
In recent weeks, rumors have been going around that AMC, America’s largest movie chain, would be filing for bankruptcy. AMC has been struggling in recent years to grow their business (AMC Stubs – a service where users can watch 3 movies a week for a small monthly fee).
“We cannot predict when or if our business will return to normal levels,” the company said in a Friday statement. “While we plan to eliminate variable costs and reduce fixed costs to the extent possible, we continue to incur significant cash outflows, including interest payments, taxes, critical maintenance capital expenditures, and certain compensation and benefits payments.” (New York Post).
According to the New York Post, AMC has been seeking consultation on the possibility of filing Chapter 11 bankruptcy.