AMC Theatres Expected To Remain Closed Through The Summer, Possibly Longer. The future is not looking bright for AMC Theatres. The popular movie theater chain has been suffering a huge loss as theaters were forced closed due to concerns over the spread of COVID-19, aka Coronavirus.
Initially it was believed theaters would begin to re-open their doors around mid-June, but the latest analysis says AMC, and other theater chains, will not be able to re-open until well past the normally busy summer season.
According to a report by Variety, S&P Global Ratings reduced AMC Theatres rating from a B to a CCC-. “We do not believe AMC has sufficient sources of liquidity to cover its expected negative cash flows past mid-summer, and we believe the company will likely breach its 6x net senior secured leverage covenant when tested on Sept. 30, 2020, absent a waiver from its lenders,” S&P Global shared in their ratings note.
The ratings company is not even sure AMC Theatres will have the financial ability to re-open their theaters after the loss the company has taken by missing the key summer season for moviegoers and not having “additional liquidity”.
“The company will likely pursue incremental financing through the CARES act or its lenders, but it is unclear when or if it will be able to secure additional liquidity,” S&P Global stated.
Even if AMC were to reopen their theaters, many folks have claimed they will still wait “a few months” after re-openings take place to prevent exposure in confined spaces with a lot of people. Many film studios, such as Marvel Studios and Disney, have already pushed release dates for films to the end of 2020 or even a full year into 2021.
Some titles, such as Artemis Fowl, will even forgo a theatrical release and will be released via digital or through streaming services such as Disney+.
It is currently unknown when AMC Theatres will re-open, if at all, but we hope they will be able to recover and keep providing the excellent movie-going experience we have come to know and love in Disney Springs at Walt Disney World and Downtown Disney District in Disneyland.
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Featured Photo Credit: AMC/Disney Springs
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