By 
AMC Entertainment Holdings Inc.’s deal with its bank lenders to extend the covenant suspension period of a loan for another year is a reflection of the company’s recovery, says CEO Adam Aron.
In a tweet late Wednesday, the AMC
AMC,
-4.03%
CEO thanked the movie-theater chain’s lenders Citigroup Inc.
C,
-0.16%,
Goldman Sachs Group Inc.
GS,
+1.09%
and Credit Suisse Group AG
CS,
+2.31%
CSGN,
+2.52%.
“Today we filed an SEC 8-K that our bank lenders have extended a covenant waiver all the way to March 31, 2024,” he wrote. “That is a reflection of AMC’s recovery being well under way… a vote of confidence in AMC by our banks that we much welcome. Thank you Citi, Goldman and Credit Suisse.”
Read more: It’s National Popcorn Day — and AMC’s CEO is all over it
AMC’s stock fell 0.8% Thursday, compared with the S&P 500 Index’s
SPX,
+0.74%
gain of 0.5%.
Aron, who has led the theater chain since 2016, is a keen user of Twitter to connect with the retail investors who turned AMC into a meme-stock phenomenon. A fan of memes and quirky tweets, Aron has racked up more than 289,000 followers on the platform.
Earlier this month, Aron, who sold more than $40 million in AMC shares between November 2021 and January 2022, used Twitter to tell investors that he would not sell more of the theater chain’s stock “any time soon,” tweeting, “I ride with you.”
Related: ‘Avatar’ ticket sales better than expected, says AMC CEO Adam Aron
Aron subsequently reiterated his pledge not to sell more stock. “I am AMC’s largest retail shareholder,” he tweeted on Jan. 5.
The movie-theater chain has been on a roller-coaster ride over the past two years that took it from beleaguered pandemic victim to meme-stock phenomenon. AMC used the steep rise in its share price to tap into equity and debt markets, raising $917 million in January 2021.
But AMC reported its 12th consecutive quarterly loss in November, and the company’s stock has fallen 40.8% in the last 12 months, outpacing the S&P 500’s decline of 6.7%.
Also see: What can we expect from meme stocks AMC, GameStop and Bed Bath & Beyond in 2023?
In December, AMC’s stock plunged toward a 22-month low after the company announced a plan to raise $110 million in equity capital and said it was seeking a 1-for-10 reverse split of its common stock. The stock hit a 52-week low of $3.77 on Jan. 6.
AMC’s Preferred Equity units, or APEs, made their trading debut in August, heralding the latest chapter in the company’s story.
The APEs have fallen 70.3% since their debut. The name is a nod to the investors who turned the company into a meme stock, who often refer to themselves as “apes” or “ape nation.”
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