Adam Aron is the CEO of AMC. Mario Anzuoni is pictured.
Mario Anzuoni is pictured.
Adam Aron made a New Year's resolution.
The AMC boss said the company took on high-interest debt in order to survive. He wants to cut interest expenses, delay debt maturities, and loosen covenants in order to strengthen the movie-theater chain's balance sheet.
He wrote that there was no guarantee of success, but that they would try hard to get it done. We are always thinking of new ways to make AMC more secure.
Movie theaters closed and the economy went into a tailspin as the company neared bankruptcy. AMC had $4.8 billion in corporate borrowings going into the Pandemic.
The company had a $1 billion debt raise last January. It completed several share offerings throughout the year that took advantage of the surge in its stock price.
The company had $5.4 billion in debt at the end of the third quarter. AMC said it had $1.6 billion in cash and another $200 million in credit lines that it didn't anticipate needing to draw from.
The company has begun to reduce its debt. AMC said it paid off $35 million of its most expensive debt in October of 2021.
AMC stock has rallied more than 1,200% in one year, thanks to loyal meme-stock traders. Aron reached out to individual investors through a number of channels, including a popular YouTube channel, and gave them perks like free popcorn.
The second biggest one-day ticket sales in AMC's history were generated by the Spiderman movie sequel "No Way Home."
Business Insider has an original article.
