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AMC Entertainment Holdings Inc (NYSE: AMC) said on Monday that since December 14, 2020, it has successfully raised or signed commitment letters to receive $917 million of new equity and debt capital, meaning it will avoid bankruptcy.

Of the $917 million, AMC has raised $506 million of equity from the issuance of 164.7 million common shares, along with the previously announced securing of $100 million of additional first-lien debt and concurrent issuance of 22 million common shares to convert $100 million of second lien debt into equity.

AMC has executed commitment letters for $411 million of incremental debt capital in place through mid-2023 through the upsizing and refinancing of its European revolving credit facility.

The new European debt gives AMC the option of paying non-cash PIK interest throughout the duration.

Based on various forecasts, the movie theatre chain estimates its financial runaway has been extended into 2021 while they also hope to make progress in negotiations with landlords about the amount and timing of theatre lease payments.

With vaccinations on the increase, AMC predicted a rise in the level attendance over the coming months, however, with other strains of the virus emerging, the company said it is remaining cautious.

“Today, the sun is shining on AMC. After securing more than $1 billion of cash between April and November of 2020, through equity and debt raises along with a modest amount of asset sales, we are proud to announce today that over the past six weeks AMC has raised an additional $917 million capital infusion to bolster and solidify our liquidity and financial position. This means that any talk of an imminent bankruptcy for AMC is completely off the table,” said Adam Aron, AMC CEO and President.

AMC shares have risen 38.18% premarket on Monday trading at $4.85.

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