AMC Entertainment Cancels Cineworld Acquisition Negotiations
AMC’s CEO says talks have been halted with Cineworld lenders relating to the possibility of several acquisitions.
Adam Aron says all talks AMC Entertainment had about acquiring Cineworld/Regal movie theatres are now officially off the table.
“We are disciplined to use our cash or stock ONLY when we are convinced that doing so is in the best interests of AMC shareholders.”
According to the 8K filing, AMC Entertainment planned on using APEs (AMC Preferred Equity) as partial payment for the acquisitions.
Here’s the latest AMC Entertainment news.
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AMC Scraps Cineworld Acquisition Deal
On Wednesday, Adam Aron released a snippet of the company’s 8K-Filing stating the following:
“AMC participated in discussions with certain of the Lenders (the “Lenders”) of Cineworld regarding a potential strategic acquisition by AMC, through a consensual plan in Cineworld’s ongoing Chapter 11 cases, including following the announcement in the Cineworld Chapter 11 proceedings that the Cineworld debtors were exploring strategic alternatives.
The discussions focused on the acquisition of certain strategic theatre assets of Cineworld in the United States and Europe, which acquisition would be financed, in part, through the issuance by AMC of APEs and debt financing provided by the Lenders, and conditioned upon a liability management exercise with respect to certain indebtedness of AMC.”
“During the course of discussions, the Company did not provide any
confidential or non-public information, analyses, compilations, forecasts, studies or other documents to the Lenders.
A definitive agreement with the Lenders has not been reached regarding the terms of any proposal to be presented to the debtors in the Cineworld cases, and at this time negotiations are not continuing.
While AMC reserves the right to continue to explore the acquisition of value enhancing strategic assets, there can be no assurance that AMC will resume any discussions with the Lenders or, if it were to do so, that it would be able to agree with Lenders or any other party as to the terms of a mutually acceptable proposal.
The Company has provided this statement pursuant to the terms of non-disclosure agreements with certain of the Lenders.”
Shareholder Comments
Most shareholders are on board, but some are wondering why APE would be used as payment when it’s trading this low.
The CEO addressed the falling share price of APE earlier this week with many shareholders still resenting Adam Aron for issuing the equity without shareholder approval.
While many shareholders continue to criticize the CEO for not raising concerns on the heavy short selling of the company, many shareholders still stand closely by Adam Aron’s side.
What does the cancellation of the Cineworld/Regal acquisition mean for AMC Entertainment?
Simply put, the company is waiting for the right opportunities to present themselves.
If there’s one thing Adam Aron has proved it’s that he’s a master at raising cash out of thin air and is precise about where he puts it.
In the past year, cash has been used to upgrade the company’s projectors with state-of-the-art laser technology, invest in their first-ever online merchandising store, all while paying down their debt.
What do you think is next for AMC Entertainment as we enter the new year.
Leave your thoughts below.
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I agree with Fireball regarding APE, it was a bad deal for retail investors, and now not worth much good to anyone who didn’t cash out when it still had value. ( which I did because it took it’s value from a stock I had used my money to buy, ‘AMC’ ). We say we want the SEC to enforce regulations, while AA is doing no differently toward us when it suits him – he’s not broke let him buy millions of AMC shares and drive the price back up to where it was at least when he stripped it in exchange for the gift of APE shares
Nor do I believe us pouring money into AMC is going to create the squeeze. If underhanded behavior happened before it will again – until it’s stopped.
Is it true AMC CEO is dumping AMC shares,
all while expecting retail investors to save the ship?
The system has to work correctly for a strategy of any sort to work. As long as rules & regulations, are disregarded without consequences, and trickery is the order of the day, it can’t move in our favor- Retail investors have made a tremendous investment, more of our money isn’t what’s needed.
More money, No – Holding yes, because already all the way in
Frank I Like your article, BUT it is total BS why AMC stopped negotiations. In MY MIND ,
It’s because that piece of shit APE did not work out the way Adam Aron had hoped. t destroyed Retail. It devalued retails price of AMC, so again it was no bonus for retail. . It came out at around $7.00 dollars today it is .68 . AA had hoped for a much bigger number on Ape , They recently dumped issued a lot APE and need that money . but not anywhere what he had hoped for , so they can’ afford to buy those theaters. So disappointed I had faith in him. Lou looks like the Hero , he told every one he was getting out of Ape I think around $6.00 . He always said it was bad for retail. I wish I had done the same .
We all are in a very bad situation as I see Ape being voted on and becoming AMC and that dilution will drive AMC lower, Hopefully Shorts take advantage of that low price and cover , but there will be so many shares our run will not be much.
Let’s start a discussion! Leave your thoughts below.