Tag: Adam Aron Twitter (Page 1 of 8)

Citi, Goldman, Extend AMC’s Covenant Waiver to 2024: What it Means

CEO Adam Aron said Citi, Goldman Sachs, and Credit Suisse have extended AMC’s covenant waiver to March 31st of 2024.

“This is a reflection of AMC’s recovery being well under way… a vote of confidence in AMC by our banks that we much welcome. Thank you Citi, Goldman, and Credit Suisse”, said AMC Entertainment (NYSE:AMC) CEO Adam Aron in January of 2023.

So, what exactly is a covenant waiver extension and what does this mean for AMC Entertainment?

What is a Covenant Waiver?

A covenant waiver is when a lender temporarily forgives a borrower’s breach of a loan covenant.

In AMC’s case, the lenders are Citi, Goldman Sachs, and Credit Suisse.

Debt covenants are restrictions that lenders (creditors, debt holders, investors) put on lending agreements to limit the actions of the borrower (debtor), AMC Entertainment.

In other words, debt covenants are agreements between a company (AMC) and its lenders (Citi, Goldman, Credit Suisse) that the company will operate within certain rules set by the lenders.

Should a borrower violate a covenant, such as not maintaining a certain interest coverage ratio or engaging in unpermitted business activities, it may constitute a loan default, per The Balance.

Financial Covenants Explained

Covenant requirements are conditions the borrower must regularly meet throughout the term to demonstrate their creditworthiness to the lender.

Lenders frequently use certain financial tests that serve as indicators of the borrower’s repayment ability.

Failure to meet these tests violates the covenant and constitutes loan default.

In AMC Entertainment’s case, lenders have waived, or forgiven AMC’s breach of contract, per their loan covenant and extended it to March 31st 2024.

What Does This Mean for AMC Entertainment?

AMC News Today.
AMC News today.

For AMC Entertainment, a covenant waiver will allow the business to run operations under its debt contracts with Citi, Goldman Sachs, and Credit Suisse until 2024.

If the company fails to meet its debt obligations, or financial covenant requirements, then the loans are subject to default.

This puts AMC Entertainment in a tricky position in terms of what they can and cannot do or say.

Which also explains why the CEO cannot raise awareness of the manipulative shorting of the company stock.

It’s very likely that speaking out on such topics may violate these covenant agreements.

Some retail investors have scrutinized Adam Aron for not speaking out on naked shorts like other CEO’s are doing today.

But this news may provide shareholders with more perspective on why that is.

Is AMC Entertainment Being Held Hostage by Lenders?

Citigroup currently holds call options representing 0 of underlying shares valued at $0 USD and put options representing 55,000 of underlying shares valued at $383,000 USD.

Source: Fintel.

The bank has been selling shares while playing put options in order to profit from the drops they’re triggering in the market.

On November 7th, 2022, Citigroup dropped AMC’s price target from $3.13 per share to $1.20 per share and used the media to promote the price target.

Just a month prior to Citi’s price hit, Credit Suisse said in October AMC shares are worth less than $1.

The banks are making their money which means it’s going to be up to the company and shareholders to prove the Wall Street short thesis wrong.

But I’m interested in hearing your thoughts.

Leave a comment down below.

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AMC CEO Now Identified As Extortion Bid Victim

AMC Entertainment CEO Adam Aron has now been identified as a terrible extortion bid victim that took place last year.

The CEO released a public statement on Thursday of a ‘vigorous federal criminal investigation’, which resulted in the extortionist being arrested, convicted of a felony, and spending nearly a year in jail.

Sakoya Blackwood, 35, was charged in a Manhattan federal court indictment with trying to extort AMC CEO Adam Aron out of up to $300,000 to keep her quiet about his sexual escapades, and about a false claim she threatened to make about him having sex with a minor.

Prosecutors have said in a court filing that in addition to that CEO, Blackwood “targeted numerous other potential victims — all wealthy and high-profile men — using fictitious identities, while camouflaging her ownership of the accounts deployed in her catfishing scheme.”

Because she came to the United States from Jamaica as a child without legal immigration status, Blackwood now faces the risk of being deported and separated from her 12-year-old daughter, her lawyer said in a court filing.

Prosecutors in a court filing said Blackwood tried to extort the victim by threatening to “falsely tell the world” that the movie theatre CEO “had sex with a minor.”

That claim was “a blatant lie which she invented out of whole cloth,” the filing noted.

But what was true were sexually explicit photos and messages the CEO shared with Blackwood as she posed in electronic communications as a former romantic partner of the victim.

Blackwood then pretended to be a vengeful ex-boyfriend and employees of media outlets – a deception knows as ‘catfishing’.

“For many months, the defendant kept the Victim suffering from the constant fear that his life would be ruined. She taunted him with the prospect of releasing embarrassing materials and, even worse, false accusations that he had sex with someone who was underage,” the filing said.

Official Statement From AMC CEO Adam Aron

Market News Today - AMC CEO Now Identified As Extortion Bid Victim.
Market News Today – AMC CEO Now Identified As Extortion Bid Victim.

“Because you are so important to me, there is a matter I want to share with you.

By definition, I live my life in the public eye. 

Unfortunately, last year I became the victim of an elaborate criminal extortion by a third party who was unknown to me related to false allegations about my personal life.

Rather than give in to blackmail, I personally engaged counsel and other professional advisors and reported the matter to law enforcement.

I did so knowing I risked personal embarrassment.

But with my access to resources, if I did not stand up against blackmail, who could?

A vigorous federal criminal investigation ensued which resulted in the extortionist being arrested, convicted of a felony, and spending nearly a year in jail.

At the time of the arrest, the U.S. Attorney for the Southern District of New York commended my having reported the matter to the FBI and the U.S. Department of Justice.  

This was entirely a personal matter. 

I was asked by law enforcement to keep this matter confidential during their investigation and subsequent court case.  

Shortly after the extortionist’s July 2023 sentencing, I informed AMC’s Board of Directors which thoroughly reviewed these events with independent outside counsel at WilmerHale.

As I said above, this indeed was entirely a personal matter, and the matter is closed.

I could not end this message without again thanking you for your support — as well as emphasizing my extreme gratitude to the U.S. Attorney’s Office for the Southern District of New York and to the FBI for their diligent, skillful, and professional handling of this unfortunate matter.”

Also Read: CoinCodex Now Predicts AMC to Soar Whopping +500% by 2024

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Market News Today - AMC CEO Now Identified As Extortion Bid Victim.
Market News Today – AMC CEO Now Identified As Extortion Bid Victim.

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AMC CEO Reflects on “Meme Stock” Frenzy of 2021

Market News Daily - AMC CEO Reflects on "Meme Stock" Frenzy of 2021.
Market News Daily – AMC CEO Reflects on “Meme Stock” Frenzy of 2021.

AMC Entertainment (NYSE:AMC) CEO Adam Aron reflects on the “meme stock” frenzy of 2021 and expresses his optimism towards the company’s future.

Today, AMC stock is up more than 32% year-to-date and has survived some of the most challenging seasons a business in its unique circumstances could have gone through.

In an interview with The Wrap, Adam Aron says he recalls when the company almost ran out of cash with only four to six weeks of cash on hand.

AMC came close to collapsing during the pandemic lockdowns when AMC Entertainment went from generating several millions per month to $0 in an instance.

“We almost ran out of cash five different times. We had times where we had just four to six weeks of cash on hand”, the CEO said.

AMC Entertainment was able to raise $5 billion from March 2020 to March 2021.

The biggest help came in January when retail investors flooded the market and purchased shares of AMC stock en masse, sending AMC shares from $2 per share to $20 per share.

“That’s a big reason we’re standing here today,” says Adam Aron.

AMC Entertainment Prepares for Pre-Pandemic Levels

Adam Aron told The Wrap that he sees Hollywood returning to something approximating pre-Covid levels of regular theatrical releases.

There were only 70 wide releases in 2022 compared to 140 in 2019, and that number is already around 100 for 2023 so far.

According to The Wrap, Adam Aron believes that AMC is out of the woods today.

“Overall box offic is up by about 1/3 compared to 2022.

If the theatrical industry overall ends up with between $8.5 billion and $10 billion for the year, AMC will have a significant recovery.”

However, Adam Aron, like many professionals in the industry, doesn’t believe that the domestic box office will reach pre-Covid levels until 2024 the earliest and 2025 the latest.

“The box office is on a positive ramp, and if we have the ability to raise cash if we need to, I have no real fear,” said Adam Aron.

Analysts Are Now Predicting Big Growth for AMC Entertainment

Analyst firm Benchmark raised its growth estimates for AMC Entertainment Friday, citing better-than-expected domestic box office performance.

AMC will be reporting its fiscal first-quarter results before market open on May 5.

Benchmark now estimates that AMC will report first-quarter revenue of $912 million, up from its prior estimate of $831 million.

Analysts surveyed by FactSet are looking for first-quarter revenue of $930 million.

“Domestic box office exceeded our expectations,” Benchmark analyst Mike Hickey wrote in a note released Friday.

The analyst firm also raised its estimate for adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to a loss of $37 million from its prior estimate of an $86 million loss.

Analysts surveyed by FactSet are looking for an EBITDA loss of $33 million.

Benchmark currently has a hold rating for AMC Entertainment.

Benchmark’s Hickey expects AMC to raise capital as soon as the settlement is resolved.

“We think AMC will immediately tap the capital markets on a successful transaction,” he wrote. “The capital raise would likely be used to provide relief to AMC’s significant net debt obligations.”

Related: Amazon and Apple Are Now Contributing Billions to Movie Industry

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AMC CEO Adam Aron Curses Mainstream Media

AMC CEO Adam Aron Curses Mainstream Media
Market News Daily: AMC CEO Adam Aron Curses Mainstream Media.

AMC Entertainment (NYSE:AMC) CEO Adam Aron has cursed two mainstream media outlets in the past week.

The CEO expressed his anger on Twitter as bigger media outlets continue to report misinformation about the movie theater chain company.

In March, Adam Aron put MarketWatch on the spotlight when it was reporting APE (NYSE:APE) at a 93.79 billion market cap.

“Market Watch currently showing 93.79 billion APEs outstanding. Clearly WRONG, wildly so. We are calling them now demanding this get corrected immediately. Also reviewing many other data sources to check for accuracy. So curse-word-here irresponsible that they publish false info,” said the CEO on Twitter.

Robinhood (NASDAQ:HOOD) and other brokerages were also reporting AMC Entertainment at a $417 billion market cap and even $421 billion market cap.

The CEO had no comments on Robinhood though users did report the broker eventually fixed AMC’s market cap.

But the latest misinformation by Benzinga really upset the CEO.

Last month, reports came out about Amazon considering the acquisition of AMC Entertainment.

Amazon insiders said these were real talks within the company but that neither party had any real offers on the table.

Here is where Benzinga messed up.

Benzinga Reports False Information about AMC

Benzinga AMC
Market News Daily: AMC CEO Adam Aron Curses Mainstream Media.

The media company was reporting on its website that AMC Entertainment was acquired by Amazon.com on Tuesday, March 28, 2023.

Benzinga later made the following statement:

“A Benzinga stock profile page inadvertently displayed information about AMC Entertainment and Amazon that originated from a rumor reported by another media outlet earlier this week.

The stock page should have noted the unconfirmed nature of the information and the language has been removed.”

But AMC’s CEO wasn’t content with the statement.

Adam Aron cursed the media outlet on social media stating the following:

“It is longstanding company policy not to comment on M&A rumors and speculation. Comment once, you have to do it always. But then comes along this DUCKING web site. Obviously the information highlighted in orange did not happen on March 28! #AreTheseDUCKERSjustDumbOrEvil

“Many 4-letter words rhyme with DUCK. Buck, Cuck, Huck, Luck, Muck, Puck, Suck, Tuck,Yuck. Can you think of any four letter word I forgot to include? To paraphrase the talented and always lively Samuel L. Jackson, “I am aghast and angry http://Benzinga.com, you Mother Duckers.”

The CEO later said, “the 2023 award for Dumbest Most Incompetent Web Site on the Planet goes to… http://Benzinga.com! While it issued a correction after we shamed them Sunday, I do not see an apology. But that doesn’t matter because we would not have accepted it. Shameful contemptible conduct!”

Apes Have Warned the CEO of Mainstream Media

In the past, apes have warned the CEO of mainstream media misconduct.

Now Adam Aron is getting a taste of what shareholders have been putting up with and reporting for years now.

For too long, the CEO neglected to acknowledge the manipulation of the media and other reports related to the company’s stock.

Perhaps this will lead AMC CEO Adam Aron to go down the rabbit hole of the injustices occurring in his company stock.

But I’m curious to know what you think.

Leave your thoughts below.

AMC Entertainment stock is down more than -22% on Tuesday.

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Market News Today – AMC CEO Adam Aron Curses Mainstream Media.

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