AMC Theatres CEO Adam Aron dismisses restructuring, Chapter 11 fears

April 10, 2024 07:24 AM PDT | By Invezz

AMC Theatres CEO Adam Aron dismisses restructuring, Chapter 11 fears — Image source: Invezz

What is Chapter 11 bankruptcy?

Chapter 11 bankruptcy enables a debtor—usually a corporation, sole proprietorship, or partnership—to formulate a reorganization plan, enabling it to sustain operations while gradually repaying creditors.

What did AMC CEO say?

Speaking to The Hollywood Reporter, Aron dismissed speculation of AMC following in the footsteps of Regal Cinemas, asserting,

“Personally, I think it’s inconceivable that AMC would have to restructure.”

He cited AMC’s robust position prior to the pandemic and emphasized the company’s resilience in navigating the challenges posed by COVID-19 and subsequent labor strikes.

“AMC has been more creative and more successful in trying to cope with COVID than just about any exhibitor on the planet,” Aron remarked. Despite facing a downturn in box office revenues, exacerbated by delays due to strikes, Aron remains confident in the company’s ability to bounce back, foreseeing a prosperous future in 2025 and 2026.

AMC’s finances

With $885 million in cash reserves as of December 2023, Aron assured stakeholders that AMC has sufficient liquidity to tide over until 2024.

Aron’s strategic initiatives to diversify revenue streams have garnered attention.

AMC’s foray into distributing concert films such as “Taylor Swift: The Eras Tour” and “Renaissance: A Film by Beyoncé” has proven successful.

The company’s spin-off retail popcorn business has expanded into major grocery chains, contributing to its bottom line.

The post AMC Theatres CEO Adam Aron dismisses restructuring, Chapter 11 fears appeared first on Invezz

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