Breakingviews - Corona Capital: Zombie companies, Dark cinemas

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From Breakingviews: European zombie companies are proliferating faster than ever before due to the COVID-19 crisis

The AMC Theatres in the Georgetown neighborhood is closed due to a global outbreak of coronavirus disease , in Washington, U.S., March 20, 2020. REUTERS/Joshua RobertsDAWN OF THE DEAD. European zombie companies are proliferating faster than ever before due to the Covid-19 crisis.

ROCKY GROUND. AMC Entertainment, the struggling global cinema operator, is suing New Jersey over coronavirus-related closures, Reuters reports. Along with other movie-theater chains, it’s saying the U.S. state should let them reopen having allowed churches, retail stores and other places to do so. It’s one sign of the company’s economic distress.

Cruise ships aside, it’s hard to find many businesses as vulnerable to a pandemic as movie theaters. Unfortunately for AMC, with digital streaming eroding its audiences long before Covid-19 arrived, it’s not the only threat to its long-term survival.

 

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Corona Capital: Zombie companies, Dark cinemasConcise views on the pandemic’s corporate and financial fallout: Zombie companies, barely or not able to cover interest costs, are proliferating; and movie-theater chain AMC Entertainment’s struggles to reopen and refinance show it’s flirting with undeadness, too.
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