AMC CEO Adam Aron On Cineworld’s Grim Outlook: “We Remain Confident About AMC’s Future”
Following London-listed Cineworld Group’s grim outlook on cinema house attendance, AMC Entertainment Holdings, Inc. (NYSE: AMC) CEO Adam Aron reassured its stakeholders that the American theater chain can withstand the oncoming weak performance at the box office.
“At AMC, as we have publicly disclosed previously, the film slate in the third quarter of 2022 is expected to be relatively weak,” said Aron. “However, we continue to be quite optimistic about the increasing demand for our portfolio of movie theatres in the fourth quarter of 2022 and calendar year 2023.”
The UK-based theatre chain plummeted more than 80% this week following its announcement of rescue talks to improve its liquidity and address growing net debt. The shares fell by 57% on the last trading day alone after the firm is reportedly preparing to file its bankruptcy.
“Any deleveraging transaction will likely result in very significant dilution of existing equity interests in Cineworld,” the chain noted.
As for AMC, Aron touted the company’s strong liquidity of about US$1 billion at the end of Q2 2022. The American chain also recently introduced its AMC Preferred Equity dividend shares which firm chief previously noted is a measure to strengthen its balance sheet.
“Accordingly, we remain confident about AMC’s future,” Aron ended.
AMC Entertainment last traded at US$18.64 on the NYSE.
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