AMC Is in a "Very Different Situation" Than Bankrupt Regal? Not So Fast.
Regal Cinemas parent Cineworld Group (OTC: CNNW.F) may have filed for bankruptcy (again) last week, but rival AMC Entertainment (NYSE: AMC) isn't in the same dire straits. That's the word from AMC's chief executive Adam Aron, anyway, who tweeted on Wednesday that "AMC is in a very, very different situation." Aron goes on to explain that "retail investors embraced us and let us raise boatloads of cash."
And he's right. His company ended the second quarter of the year with nearly $1 billion worth of cash, and just last month secured the right to issue -- sell -- 483.2 million shares of its newly minted preferred stock, AMC Preferred Equity (NYSE: APE).
To suggest AMC isn't facing a similar situation to Cineworld, however, may not be entirely accurate. The company is still bleeding money, and after a firm rebound in movie-going this year, consumers' interest in the theater experience is waning again. Labor Day weekend's box office was the worst Labor Day weekend in years, underscoring the tepid ticket sales we've seen since late July.
Source Fool.com
