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Anonymous ID: 227691 Oct. 20, 2020, 6:33 a.m. No.11169053   🗄️.is 🔗kun   >>9229

AMC Entertainment to Sell Stock Amid Bankruptcy Warning

 

AMC Entertainment Holdings Inc., the world’s largest cinema chain, agreed to sell as many as 15 million shares of its stock while warning investors that it may need to file for bankruptcy, leaving its equity worthless.

 

AMC, contending with a liquidity crisis that threatens its ability to remain a going concern, said the equity distribution plan might not be enough. With $417.9 million in cash on hand, the company still needs a material amount of new funding by the end of the year to stay in business, it said in a filing Tuesday.

 

If AMC is unable to raise enough cash to meet its obligations, the company said it would file for bankruptcy or seek an out-of-court restructuring of its debts.

 

The company’s shares fell as much as 12% in volatile premarket trading and were down 10% to $3.18 at 8:41 a.m. in New York. The stock is down 51% this year through Monday’s close. A Chapter 11 bankruptcy gives a company the ability to stay in business while it reworks its borrowings, negotiates rent reductions and closes underperforming locations. In the event of a liquidation or bankruptcy, AMC’s shareholders would likely suffer a total loss of their investment, the company said. AMC was considering a range of options that include a potential bankruptcy to ease its debt load. Lenders to the Leawood, Kansas-based cinema chain held preliminary talks among themselves about providing it with financing if it decides to file for Chapter 11 court protection.

 

AMC and other movie-theater owners have been trapped in a tough situation since the coronavirus pandemic forced auditoriums to close in the spring. While many locations have reopened, capacity restrictions and audience skittishness have deeply hurt revenue. Even where cinemas are open, there are few major draws to put on their screens. Film studios have moved most of their big releases to 2021 and beyond, not wanting to dump high-cost movies into a constrained market.

 

The industry got a boost Monday when New York state set the reopening of theaters outside New York City. The continued absence of cinemas in that city and Los Angeles has been a particular burden on movie chains, and the step raised hopes that the New York City market would follow soon.

 

Besides the equity distribution plan, AMC reported preliminary third-quarter revenue of $119.5 million, below analysts’ consensus estimate of $163 million.

https://www.bloomberg.com/news/articles/2020-10-20/amc-entertainment-to-sell-new-stock-amid-going-concern-worries

Anonymous ID: 227691 Oct. 20, 2020, 6:46 a.m. No.11169149   🗄️.is 🔗kun   >>9195 >>9397 >>9530 >>9533 >>9566

U.S. to Accuse Google of Protecting Illegal Monopoly

 

The Justice Division plans to accuse Google of sustaining an unlawful monopoly over search and search promoting in a lawsuit to be filed on Tuesday, the federal government’s most vital authorized problem to a tech firm’s market energy in a era, in response to officers on the company who weren’t approved to talk on the file.

 

The swimsuit would mirror the pushback towards the facility of the nation’s largest firms, and particularly expertise giants like Google, Amazon, Fb and Apple. Conservatives like President Trump and liberals like Senator Elizabeth Warren have been extremely important of the focus of energy in a handful of tech behemoths. Lawyer William P. Barr, who was appointed by Mr. Trump, has performed an unusually energetic function within the investigation. He pushed Justice Division legal professionals to deliver the case by the tip of September, prompting pushback from attorneys who needed extra time and complained of political affect. He has spoken publicly concerning the inquiry for months and set tight deadlines for the prosecutors main the hassle.

 

A lawsuit may stretch on for years and will set off a cascade of different antitrust lawsuits from state attorneys common. About 4 dozen states and jurisdictions have carried out parallel investigations and are anticipated to deliver separate complaints towards the corporate’s grip on expertise for internet marketing.

 

Google is predicted to combat any authorities efforts utilizing a world community of legal professionals, economists and lobbyists. The corporate has lengthy argued that doesn’t illegally abuse its market energy. However a victory for the federal government might remake one among America’s most recognizable corporations and the web financial system that it has helped outline because it was based by two Stanford College graduate college students in 1998.

 

Google didn’t instantly have a remark.

https://washingtonsources.org/tech/u-s-to-accuse-google-of-protecting-illegal-monopoly/67119/