AMC Theatres Reports "Going Concern" Doubt, Will Post Loss of Up to $2.4B on Impairment Charge
Cinema giant AMC Theatres disclosed Wednesday that it expects its first-quarter financials, which were during the second half of March hit by the shutdown of its circuit, to include a loss of up to $2.4 billion, driven by a big impairment charge amid the novel coronavirus pandemic. The company also said there was "substantial doubt" about its ability to "continue as a going concern for a reasonable period of time." The "going concern" phrase is a warning that a company could eventually have to file for bankruptcy and go out of business.