Efforts to Revive AMC Stock Have Fallen Flat

A major dilemma for AMC stock is what would happen if it does nothing to address the core liability. Without a debt restructuring, reports Bloomberg, the company’s “repayment obligations will balloon in 2026,” when $3 billion of its total obligation will be due.

AMC got into this hole to “fund an acquisition spree that created the world’s largest cinema chain.” But that decision has now put it in a precarious position. As of the quarter ended December 2023, the company held $884 million in cash and equivalents. Still, its free cash flow was in the red for 2023, coming in at a loss of $445 million. While that is an improvement over the FCF loss of $848 million in 2022, AMC’s slow revenue growth is a perplexing challenge. $AMC Entertainment (AMC.US)$