00:00AMC Theatres revealed on Tuesday that it's running out of its cash resources.
00:05The movie theater giant explained that if current trends persist,
00:09existing cash resources would be largely depleted by the end of 2020 or early 2021.
00:15Thereafter, to meet its financial obligations as they become due,
00:18the company will require additional sources of liquidity or increases in attendance levels.
00:23Major movie releases that were previously scheduled to be released in the fourth quarter
00:26have either been rescheduled for 2021 or slated for streaming releases instead.
00:31AMC added certain competitors have decided to temporarily re-close their theaters
00:35in light of the ongoing pandemic and the reduced slate of movie releases,
00:39which may further exacerbate the trend.
00:41The company said it believes its cash burn to date is in line with prior expectations.
00:46However, given the reduced movie slate for the fourth quarter
00:48and in the absence of significant increases in attendance from current levels,
00:52its existing cash resources will run out.
00:55Among measures the firm is considering to boost its liquidity are additional debt
00:59and equity financing and further re-negotiations with landlords
01:02regarding its lease payments, among other measures.
01:05For more on this story, head to THR.com.
01:07For The Hollywood Reporter News, I'm Neha Joy.
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