Embattled AMC Entertainment to Delay Financial Reports Due to Coronavirus Pandemic

By Dave McNary

LOS ANGELES (Variety.com) – Embattled AMC Entertainment Holdings has opted to delay filing its financial reports due to the coronavirus pandemic, which has resulted in the exhibitor closing all its theaters.

In an 8-K filing with the Securities and Exchange Commission, the company said on Wednesday that it will delay filing its first-quarter results and its proxy until June.

“COVID-19 has created substantial disruption in the Company’s operations including the suspension of all theatre operations worldwide resulting in the cessation of essentially all revenues,” AMC said. “As a result, all corporate-level employees have been either fully or partially furloughed, significantly limiting the resources available to prepare the Delayed Filings. Furthermore, to the extent corporate-level employees continue to work, they are required to do so from their homes due to local governmental orders which has decreased efficiency in fulfilling the tasks necessary to complete the Delayed Filings.”

The company also said it plans to to file the proxy statement by June 15 and first-quarter earnings by June 24. It has scheduled its annual meeting of shareholders for July 29, but has not disclosed the location.

The filing comes a day after AMC vowed that it won’t screen Universal titles, in response to the studio’s plans to release future movies on premium video on demand at the same time as they launch in theaters. NBCUniversal CEO Jeff Shell made that announcement on Tuesday, citing the strong premium VOD performance of “Trolls World Tour.”

AMC’s fight with Universal comes as the chain already faces the prospect of staying shut for several more months due to the global health crisis. AMC Entertainment unveiled plans on April 16 to raise $500 million in new debt to improve its balance sheet. The funds from the senior notes offering, which will have to be repaid in 2025, should be enough to keep the company going until the middle of the summer, AMC said in a filing.

Wall Street analysts have been speculating this month that the chain may also be on the brink of filing for bankruptcy. The likelihood of a bankruptcy reorganization doesn’t mean that AMC’s 634 locations in the U.S. and Canada — and more than 1,000 venues worldwide — will be closing their doors for good.