AMC Theatres Faces Financial Worry After Credit Rating Downgrade - IGN
Long and short of it: they were doing just okay before the virus in terms of having enough money to pay their creditors. Now they’re in dire straits and their credit is downgraded to “default imminent.”
S&P analyst wrote this: "We do not believe AMC has sufficient sources of liquidity to cover its expected negative cash flows past mid-summer, and we believe the company will likely breach its 6x net senior secured leverage covenant when tested on Sept. 30, 2020, absent a waiver from its lenders.”
Math and numbers were never my strong suit but that all reads pretty bad. They’re even saying in the report that when shyt gets back to normal, whatever normal is, they don’t see AMC recovering
Long and short of it: they were doing just okay before the virus in terms of having enough money to pay their creditors. Now they’re in dire straits and their credit is downgraded to “default imminent.”
S&P analyst wrote this: "We do not believe AMC has sufficient sources of liquidity to cover its expected negative cash flows past mid-summer, and we believe the company will likely breach its 6x net senior secured leverage covenant when tested on Sept. 30, 2020, absent a waiver from its lenders.”
Math and numbers were never my strong suit but that all reads pretty bad. They’re even saying in the report that when shyt gets back to normal, whatever normal is, they don’t see AMC recovering
Hostile workplace ass nikkas
