AMC to get $100 million infusion from investor

AMC Entertainment is getting a $100 million shot in the arm to help it survive the effects of the health crisis.

The world's largest theater chain said Friday it was getting the cash infusion from Mudrick Capital Management.

But will that be enough?

The company said it will need at least $750 million more to fund the business through next year. It plans to sell more equity and renegotiate rents in order to avoid filing for bankruptcy.

Without a new round of funding the company said it will run out of cash in January.

Like many movie theater operators, AMC is struggling with delayed Hollywood releases and theater closures, including in two of its biggest markets, Los Angeles and New York City.

In just the period From Oct. 1 to Nov. 30, AMC said overall attendance at its U.S. theaters plummeted 92% compared to a year earlier.

And the struggle is likely to continue next year after Warner Bros. announced it would release all of its films in theaters and on its sister streaming service HBO MAX on the same day.

Like many tied to Hollywood, AMC strongly opposes the move.

Investors are worried AMC will collapse under the weight of the changes impacting the movie industry. AMC’s shares were down 4 percent on Friday and have lost nearly 50 percent of their value this year.