AMC CEO reacts to Cineworld bankruptcy

AMC Entertainment CEO Adam Aaron reacted on Twitter to rival movie theater chain Cineworld’s filing for bankruptcy on Wednesday.

Cineworld, the world’s second-largest cinema chain after AMC Theaters, said Wednesday that it had filed for Chapter 11 bankruptcy in the US Bankruptcy Court in the Southern District of Texas.

The owner of Regal Cinemas had earlier confirmed that it was considering the move in August.

“Fortunately, AMC is in a very, very different position – as retail investors embraced us and let us carry the cash load,” Aaron tweeted in response to its rival’s filing. “Thanks to retail! You really saved AMC.”

Regal Cinemas Parent Cineworld Files For Bankruptcy

AMC’s retail investors helped protect the company from potential bankruptcy when COVID-19 pandemic restrictions forced cinemas to close their doors.

The company issued APE preferred equity units as a special dividend in August, and they have since started trading on the New York Stock Exchange. The ticker symbol for the units stems from the nickname of the world’s largest cinema operator “Ape” retail investors.

AMC Entertainment Holdings Inc. reported sales in the first quarter to be five times higher than in the year-ago period as filmmakers continue to return to theaters amid the COVID-19 pandemic. (iStock / iStock)

AMC said it had available liquidity of $1.176 billion at the end of the second quarter of 2022. It reported about $1.17 billion in second-quarter revenue, and its net loss narrowed from $344 million to $121.6 million.

AMC declares special dividend, quarterly loss to posts

Cineworld and AMC have both previously stated that they expect a limited third quarter film slate.

However, Aaron said in an August statement that AMC is “quite optimistic about the growing demand for our portfolio of theaters in the fourth quarter of 2022 and calendar year 2023.”

AMC CEO Adam Aaron

Adam Aaron arrives at the Beverly Hilton Hotel on November 8, 2019 in Beverly Hills, Calif., to honor Charlize Theron for the 33rd American Cinematheque Awards Presentation. (Albert L. Ortega / Getty Images / Getty Images)

The company said in a statement that Cineworld expects its global business and theaters to operate “as usual” during its restructuring. It anticipates coming out of Chapter 11 bankruptcy in the first three months of 2023.

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“The pandemic was an incredibly difficult time for our business, with the closure of theaters and the massive disruption to film schedules that led us to this point,” Cineworld CEO Mookie Gridinger said in a statement. “This latest process is part of our ongoing efforts to strengthen our financial position and seek a de-leveraging that will create a more resilient capital structure and effective business.”

anchor Security The last Change Change %
AMC AMC Entertainment 8.30 +0.10 +1.22%
monkey AMC Entertainment 5.08 +0.16 +3.25%

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