Baller Alert Entertainment & Lifestyle
The China-based Dalian Wanda Group has released a statement, saying the rumors of their AMC theater franchise filing bankruptcy are “pure rumor.”
Last week, rumors surfaced claiming that Wanda Group, who owns the AMC movie theaters, would file chapter 11 bankruptcy after the S&P Global forecasted the depletion of Wanda’s monetary by mid-summer, with the possibility that AMC theaters would not be open by June amid the coronavirus.
In the statement, Wanda Group said, “Dalian Wanda Group hereby declares that the recent online media speculation that Wanda Media’s AMC cinemas will file for bankruptcy is pure rumor,” in Chinese.
All 630 AMC theaters in the U.S have ceased operations due to the COVID-19 pandemic. As of today, the theaters will remain closed without a date on when services will resume.
The world’s largest movie theater franchise is drowning in $4.9 billion worth of debt, with the franchise being valued at $327 million.
Deadline reported that rivals to the AMC franchise wouldn’t be surprised if AMC filed for Chapter 11 in the foreseeable future. If AMC were to file, it might be able to re-open under Chapter 11 due to the bankruptcy court labeling the theaters as” critical vendors.”
Since the stay-at-home orders, AMC has furloughed 25,000 employees countrywide, reduced the pay for general theater managers, and cut employees’ pay at their corporate headquarter in an effort to successfully re-open once restrictions are lifted.
AMC’s stock closed on Tuesday at $2.18, up 5.83% since the previous trading session.
