A Year After Nearly Escaping Bankruptcy, AMC's Troubles Continue
A major movie theater company is in trouble again, a year after narrowly escaping bankruptcy. AMC Entertainment's (AMC) value hit a 52-week low Wednesday as the company faces mounting debt, falling stock, and a less-than-spectacular release calendar.
The company recovered from near bankruptcy last year, propelled by the popularity of meme stocks and the NFT market. However, market crashes in both those areas this year have left the movie chain in dire straits.
While the company has explored ways to diversify revenue, including upgrading theaters, as well as investing in a gold mine, the efforts have failed to gain traction. The company also recently issued a preferred equity dividend called "APE," an ode to the popular monkey-based NFTs.
As of June 30, AMC had availability liquidity of more than $1.17 billion. However, its debt load stands at $5 billion, a figure $2 billion over the market value.
The company has also reported dismal revenues in recent months. AMC posted losses of $121 million in its Q2 report.
Shares of AMC closed Wednesday at $5.85, down $0.27, or 4.41%. The crash in value represents a decline of over 80% for the world's largest movie theater company.
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