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Post by John Titor on Apr 11, 2020 6:09:06 GMT 10
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Post by sman12 on Apr 12, 2020 8:47:00 GMT 10
Wow, just as I figured. An entire theater chain is now going under because of the pandemic. I won't be surprised if other theater chain follow suit.
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Post by Deleted on Apr 12, 2020 10:17:38 GMT 10
If you think that's bad, wait till all of your local non-chain restaurants start disappearing.
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Post by Cassie on Apr 12, 2020 10:37:43 GMT 10
Holy shit... That's awful... and they can't save themselves because the pandemic is closing everything. AMC is doomed
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Post by Deleted on Apr 12, 2020 10:53:56 GMT 10
Guys, bankruptcy doesn't mean shutting for good. It just means restructuring your debt and re-evaluating your assets for quick liquidity. It's the sensible thing to do for a business that can't expect to operate for the next 6-12 months or so.
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Post by Cassie on Apr 12, 2020 12:00:32 GMT 10
Guys, bankruptcy doesn't mean shutting for good. It just means restructuring your debt and re-evaluating your assets for quick liquidity. It's the sensible thing to do for a business that can't expect to operate for the next 6-12 months or so. But AMC lives on being open. If they shut down their whole theater lineup, they would go bankrupt and they have. They could go completely under because of this.
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Post by Deleted on Apr 12, 2020 13:22:44 GMT 10
Guys, bankruptcy doesn't mean shutting for good. It just means restructuring your debt and re-evaluating your assets for quick liquidity. It's the sensible thing to do for a business that can't expect to operate for the next 6-12 months or so. But AMC lives on being open. If they shut down their whole theater lineup, they would go bankrupt and they have. They could go completely under because of this. I didn't say they weren't going bankrupt, I said bankruptcy wouldn't be a bad thing. You guys are confusing bankruptcy with liquidation. If it was liquidating THEN all its cinemas would be closing. But it's not liquidating, it's filing for bankruptcy, which basically means while some theatres might close (in the asset fire sale), it's mainly going to restructure its debt so that its creditors can convert their debt into equity (ownership). I don't remember the details but I was taking economics in high school while the Recession was happening and the summary is basically you file for bankruptcy if you think your business can still generate good money (which theatres do in normal circumstances), but your debt is out of control, which is understandable in this crisis.
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