Don't Bury AMC Entertainment Stock -- It's Not Dead Yet
Liquidity is everything for AMC Entertainment Holdings (NYSE: AMC), and right now the country's largest multiplex operator has bought itself some more time. AMC stock spiked higher at Monday's open after the exhibitor announced that it has raised $917 million through new debt and equity in the past six weeks.
"This means that any talk of an imminent bankruptcy for AMC is completely off the table," CEO Adam Aron told investors in this week's announcement.
Obviously this is a big deal. Avoiding bankruptcy that would more than likely wipe out all common shareholders is far better than the massive dilution that has taken place since the springtime of last year when AMC has been panhandling to keep its projectors warm. However, there are still a lot of assumptions that need to go right for AMC to hold on to this Monday's early gains. Let's grab a seat, pass the popcorn, and see what the scrappy theater chain needs just as much as money.
Source Fool.com
