AMC Entertainment Holdings Inc, the world's largest theater network, has issued a warning about cash problems and revealed that there may be a need to restructure liability in court if there is no source of liquidity.
In addition, its shares are also reported to have fallen by almost 4% in premarket trading, saying that there is an expectation that cash resources will run out by the end of this year or early 2021.
Although large theatrical networks such as AMC Entertainment, rival Cineworld Group and others have reopened their branches in most locations, audiences are still plagued by fears of the Covid-19 virus transmission and facing problems with delays in major releases by studios. In addition, small and medium theater companies say they may not be able to withstand the effects of the epidemic.
Earlier this month, AMC claimed that more than 80% of its theaters in the US would remain operational. Nevertheless, the number of visitors has declined by 85% compared to last year, since reopening after the curfew was revoked.
In this regard, there are many questions that arise in relation to the company's ability to survive in the long run.
