AMC Theaters Might Not Survive Coronavirus Outbreak: Reports

PITTSBURGH, PA - A majority of southwestern Pennsylvania's movie screens could remain dark even after the coronavirus outbreak ends. Financial analysts say AMC, the nation's largest theater chain, might be forced to permanently close as a result of the pandemic.

S&P Global has downgraded AMC's credit rating to "default imminent, with little prospect for recovery," further placing into doubt the future of a company that had a $5 billion deficit at the end of 2019.

AMC theaters have been closed since mid-March because of the outbreak, and AMC officials have said they might not reopen until June. S&P believes that projection is overly optimistic.

“While there is a high degree of uncertainty about the rate of the coronavirus’ spread and when the pandemic will peak, some government authorities estimate that the peak will occur between June and August,” S&P analysts wrote in their outlook.

“We expect AMC Entertainment Holdings Inc.’s (AMC) theaters will remain closed beyond June due to the impact of the global coronavirus pandemic. We do not believe AMC has sufficient sources of liquidity to cover its expected negative cash flows past mid-summer."

AMC operates 634 locations in the United States and Canada. Its western Pennsylvania locations include:

• AMC Waterfront 22, The Waterfront.

• AMC South Hills Village 10, Bethel Park.

• AMC Mt. Lebanon 6, Mt. Lebanon.

• AMC Delmont 12, Delmont.

• AMC Westmoreland 15, Greensburg.

• AMC South Pike 10, Sarver.

• AMC Uniontown 6, Uniontown.