Odeon owner sounds the alarm in wake of closures
The owner of Odeon cinemas has issued a stark warning over its future as the firm's finances come under massive pressure from closures around the world.
AMC Entertainment, whose largest shareholder is Chinese billionaire Wang Jianlin, said any delays to reopening cinemas or the timing of new releases would raise “substantial doubt” about its future.
The company said: “If we do not recommence operations within our estimated timeline, we will require additional capital and may also require additional financing if, for example, our operations do not generate the expected revenues or a recurrence of Covid-19 were to cause another suspension of operations.”
AMC is asking bondholders to take haircuts of about 50pc on the face value of existing debt, with an initial deadline of June 16.
The world's largest cinema operator - which has about 1,000 sites and 11,000 screens, including 120 cinemas in the UK and Ireland - added that its ability to raise more cash was not guaranteed.
It was forced to close all cinemas in the US and Europe by governments trying to stop the spread of coronavirus.
Britain’s lockdown restrictions are expected to be extended until early July, at which point cinemas - as well as other venues such as concert halls, museums and theatres - could open if they meet the Government’s "Covid-19 Secure" guidelines.
The new measures will require social distancing and a rigorous cleaning regime, piling further strain on the firm's profits.
Bosses said: “We cannot predict when or if our business will return to normal levels."
Rival operator Vue said its cinemas could reopen as early as mid-July in time for the release of Christopher Nolan's latest blockbuster Tenet.
AMC bought Odeon from Guy Hands’ Terra Firma private equity group in a $1.2bn (£921m) deal four years ago.
The company expects to report a loss of between $2.1bn and $2.4bn for the three months to March 31.
