Business Insider reports that AMC Theaters recently sought to raise up to $844 million through stock sales to improve its financial condition, which has been substantially weakened due to restrictions on indoor gatherings put in place in response to the COVID-19 pandemic. AMC’s stock price took a major hit after Warner Bros. announced it would release its full 2021 movie slate on streaming service HBO Max. AMC reportedly indicated that it will likely need to pursue a strategic restructuring and/or bankruptcy if it fails to reach normalized revenue levels. [Business Insider; Dec. 4, 2020]
Reporting from Reuters shows employment in the U.S. passenger and cargo airline industry falling by roughly 29,000 workers through the month ending mid-October after government restrictions on layoffs expired on September 30, 2020. Since March of this year, major airlines like United Airlines and Delta Air Lines have each reduced their workforces by approximately 32%. Meanwhile, American Airlines announced in October 2020 that it would be furloughing more than 32,000 workers. [Reuters; Dec. 3, 2020]
The Wall Street Journal reports that companies and governments have issued a record $9.7 trillion of bonds and other debt instruments so far this year, fueled by support from the Federal Reserve and other central banks in the form of interest rate cuts and the purchase of fixed-income securities. [WSJ; Nov. 30, 2020]
Reporting from Bloomberg indicates that officials in Japan have started selling bonds to assist smaller businesses as they continue to struggle financially amid the COVID-19 pandemic. The Tokyo Metropolitan Government priced a 60 billion yen bond (the equivalent of approximately US$577 million) at a 0.01% interest rate, which it will use as loans for ailing small businesses. 740 Japanese businesses have filed for protection under Japan’s Bankruptcy Act for reasons related to COVID-19 so far this year. [Bloomberg; Nov. 26, 2020]