According to an “S&P Global” report, AMC Entertainment’s credit rating has been downgraded froma ‘B’ to a catastrophic ‘CCC-’, which means, “Default imminent, with little prospect of recovery." That means its 600 chains all around the country are in danger of being shut down for good. Supposedly, even before the COVID-19 pandemic happened, AMC was already playing with fire and on the brink of bankruptcy.
The impending, maybe even inevitable, closure of AMC theaters all around the country would be a devastating blow to the theatrical experience in the United States. At this present time, it is inevitable for AMC to demand some kind of bailout. According to Subscription Inside, AMC reported a $5 billion-plus deficit in 2019 and losses of $149 million for the year. Yikes.
Of course, there is a solution to this immediate problem. Maybe, just maybe, we could go back to some kind of normalcy before it’s too late for AMC. That’s the glass-half-full option for them. The more realistic probability would be that its competition, Regal cinemas, could purchase AMC theaters and just convert them to their own. With the 2020 summer movie season on the brink of extinction, the losses for theater chains worldwide would be immeasurable. Only Christopher Nolan’s “Tenet” and Pixar’s “Soul” have kept their summer movie release dates intact, although I’m hearing that could change for both of these movies by the end of this week.
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