News has recently come out from AMC Theatres that their company is constantly running out of money. According to their speculations, the theatre company might be drained of all cash assets by January of 2021. The company went on to reveal in a statement to Variety that in the absence of additional liquidity, the Company anticipates that exists the cash resources will be exhausted in January of 2021.
The cinema chain has explained that they have completed a debt offering of 100 million US dollars. They have taken it from the Mudrick Capital Management investment firm. This has happened after they have already deferred more than 400 million Dollars of rent commitments that were made for 2021. However, there are various estimates, according to the executives, that the company is going to require additional 750 million dollars to survive during this pandemic created by the fatal coronavirus.
AMC Theatres are constantly running out of cash because of the pandemic!
AMC has also disclosed the cause behind this bankruptcy. It is majorly because of the delay in the releases of blockbusters that have happened this year. This announcement comes after Warner Brothers announced that they would release their lineup of entire 2021 films in theatres with a simultaneous release of these films on HBO Max. This will definitely cause a huge roadblock for the earnings of these theatres.
Obviously, everyone would want to pay money at a place where they can watch content safely. And what is safer than their home and the comfort of it. AMC has specifically noted that these challenges have come out their way after the aforementioned announcement by Warner Brothers. All this while, there might be other studios that may adopt a similar release pattern for their films, which will destroy the classic theatres.
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Warner Brother’s decision to is deteriorating the situation of AMC!
As is previously reported by Warner Brothers and about their decision to release the entire slate of films in 2021 in theatres and HBO Max. This consists of 17 major films that could have proven to be a fortune at the box office. This roster includes the highly anticipated projects such as Dune along with Matrix 4 and In The Heights.
Well, it was already hinted by Warner Brothers that their decision would not change despite the fact of the backlash they are facing from almost everyone. One such film, Wonder Woman 1984, is set to release on HBO Max on Christmas Day, along with the theater release. All this while, the film will be open in international film markets starting from the 16th of December 2020. Copying this move, we have Disney, who has released their live-action version of the film Mulan on their streaming platform this fall.