AMC Theatres is doing everything it can to avoid bankruptcy. The largest movie theater chain in the U.S. has been in financial trouble throughout most of 2020. While 2021, at least later in the year, may offer greener pastures, here and now, things continue to look grim. As such,AMC Theatres is attempting to raise $125 million through a new stock offering to help stay afloat in the short term.

According to a new filing with the Securities and Exchange Commission (SEC), AMC is attempting to sell as many as 50 million shares of stock in a new round of funding. This is a strategy the company has already employed in 2020, raising more than $100 million with a previous stock offering. The filming warns that, if they fail to raise the funds needed, bankruptcy is likely coming.

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"Our ability to obtain additional liquidity, which if not realized or insufficient to generate the material amounts of additional liquidity that will be required until we are able to achieve more normalized levels of operating revenues, likely would result with us seeking an in-court or out-of-court restructuring of our liabilities, and in the event of such future liquidation or bankruptcy proceeding, holders of our common stock and other securities would likely suffer a total loss of their investment."

AMC's stock price has plummeted throughout 2020. Shares are down around 70 percent compared to the beginning of the year. Even though many companies within the exhibition sector saw stock prices increase after Wonder Woman 1984 had a stronger-than-expected showing at the box office in its debut, things are still a far cry from where they were a year ago. The company also stated in the filming that they intend to use the money raised from this new stock offering for various corporate purposes.

"We intend to use the net proceeds from the sale of the Class A common stock offered by this prospectus for general corporate purposes, which may include the repayment, refinancing, redemption or repurchase of existing indebtedness or capital stock, working capital, capital expenditures and other investments."

Even before theaters were forced to close earlier this year and the box office took a nosedive, AMC wasn't in particularly great shape. The chain was already carrying around $5 billion in debut. While bankruptcy is far from ideal, analysts expect that AMC could emerge on the other side of a Chapter 11 filming better positioned for the future. It would allow them to restructure debt and negotiate with creditors. But it would be undoubtedly brutal in the short-term.

With vaccines being deployed around the world it is expected that moviegoing will pick up in 2021. But with WarnerMedia releasing its entire slate for next year on HBO Max as well as in theaters, not to mention theaters surviving long enough to get to that point, there are many hurdles to clear before things can return to relative normalcy. This news comes to us via CNBC.