AMC Entertainment Holdings Inc. is exploring using a possible equity issuance to pare debt obligations or overdue rent, the theater chain’s chief executive said, WSJ Pro Bankruptcy reported. If shareholders authorize the issuance of up to 500 million additional shares, as AMC has proposed, the company would consider using proceeds from stock sales to buy back debt at a discount or issuing shares to landlords as compensation for deferred rent, CEO Adam Aron said in an interview. The company also could keep the proceeds as a cash buffer against a longer-than-expected recovery from the coronavirus pandemic. When AMC has recovered from the industrywide downturn, the company also would consider using shares or proceeds from stock sales to acquire other movie theater chains or related businesses, Mr. Aron said. Leawood, Kan.-based AMC, the world’s largest movie theater chain with close to 1,000 locations, came close to running out of cash during the pandemic, and even created a contingency plan in case it had to file for bankruptcy.
