Here's Why The Curtains Could Soon Close on AMC Entertainment
Few industries have been hobbled by the coronavirus pandemic as much as movie theaters.
Cruise ships have been docked for safety; casinos (sometimes referred to as cruise ships on land) are particularly vulnerable to spreading the disease. But movie theaters may be in an even worse position than those sectors, and AMC Entertainment (NYSE: AMC), the world's largest theater operator, is particularly at risk.
The company warned in early June that its ability to continue as a "going concern" was in substantial doubt, an admission that the company could be forced into bankruptcy. Even before the pandemic hit, its financial position was weak, as the company had $265 million in cash and nearly $5 billion in debt. It also lost $149 million on a generally accepted accounting principles (GAAP) basis, and the company paid out a generous dividend, making it more vulnerable to the current crisis.
Source Fool.com
