(Yicai Global) Oct. 14 -- Struggling US movie theater chain AMC Entertainment Holdings has refuted a recent report that it is to file for bankruptcy, and says it will instead try to raise more funds mostly through equity financing as the Covid-19 pandemic strangles business, The Paper reported today, citing the firm’s chief executive officer.

AMC, which is owned by Chinese real estate and entertainment conglomerate Wanda Group, “is considering a range of options that include a potential bankruptcy to ease its debt load,” Bloomberg reported earlier today, citing people with knowledge of the matter. The firm is in discussions with investors to lend it more cash to allow it to stay in business while it considers its options if it decides to file for Chapter 11 bankruptcy, the report said.

“No formal proposals have been exchanged,” the Bloomberg report added. “The situation remains fluid and plans could change, depending on negotiations and market conditions.”

The Covid-19 pandemic has brought the US cinema industry to its knees with audiences preferring to stay home and movie studios deferring the release of new blockbusters. Attendance has been down 85 percent from the same period last year, the Bloomberg report said, citing AMC.

Kansas-based AMC is the US’ biggest cinema chain with over 600 theaters. It was acquired by Wanda for USD2.6 billion in 2012. Most of Wanda’s investment was swallowed up by AMC’s USD1.9 billion debt. So far, Wanda has earned USD326 million from stock dividends and USD500 million through share transfers.

Editor: Kim Taylor