China’s Wanda Group has relinquished its majority stake in AMC Entertainment, the exhibitor said in its annual report filed with the US Securities And Exchange Commission on Friday (March 12).
According to the report, Wanda owns 9.8% of common stock in the cinema major and retains two seats on the board of March 3, after it reduced its stake to 23.1% of AMC’s outstanding common stock and 47.4% of combined voting power of common stock by December 31 last year.
Wanda bought a controlling interest in AMC Entertainment in 2012.
The development comes after AMC reported a $4.6bn net loss in 2020, a torrid year that forced the exhibition sector to close global sites during the pandemic and eventually reopen in limited numbers at restricted capacity to a dearth of fresh inventory from Hollywood studios.
AMC closed sites and furloughed staff in the US and was on the verge of bankruptcy last year. Following a recent cash raise of more than $900m, it now says it has enough money to operate into late 2021.
Earlier this month it was reported that CEO Adam Aron earned $20.9m in compensation in 2020 including bonuses and stock, compared to $9.6m in 2019.
Last week Alamo Drafthouse said it had filed for voluntary bankruptcy, was selling its assets to the senior lender group, and will undergo a restructure.
Screen understands it will be a while before all sites have fully returned to business, and it will take longer until a steady flow of new releases and consumer confidence in film-going returns.