AM Charity
SHAREHOLDER LOAN
"How about the idea that 4M shareholders would convert expensive corporate debt into ( near ) zero interest shareholder debt ?"
An INTRODUCTION
Today's AMC "bottom line" financial results suffer from large interest payments on a substantial outstanding corporate debt. Indeed, AMC was forced to take on large expensive debts during the Covid pandemic while they were with their back against the wall(street). Today, the operational results are evolving very positively, possibly structurally EBITDA positive. But because of the disproportional financial costs ( around 365M USD on a yearly basis ) the net result is still negative and is reducing the cash buffer each quarter.
During that same time, a number of market participants, allegedly, massively shorted AMC. They were betting on a very likely bankruptcy scenario. What then followed, is broadly known in the investment community. So today, again allegedly, around 4M retail shareholders are the majority owners of the company.
We believe it's in the owners best interest to , yet again, come our company to the rescue and support them with a shareholder loan with near zero interest, to replace the expensive existing corporate debt. This would remove the need for any further equity dilution of any kind.
It would theoretically require each shareholder to loan "only" 1000 USD to AMC to replace the entire 4B USD of existing corporate debt. Think about that.
As a reminder, the shareholders refused AMC to issue more equity when the stock price was at significant elevated levels as compared to today ( above 50 USD per share ). Today we indirectly force the management to issue equity for debt reduction at below 10USD ( combined value APE/AMC per share ). I'm aware the opinions are divided upon this subject.
We believe that the momentum that this operation could create, if it were to be reasonably successfull, would have a big impact on a sustainable healthy future for our company. And we would get all of this, only for an additional limited risk.
"We love movies. And we love fair markets" #amcharity
STEPS
We are publishing on this site a survey to poll your thoughts on this initiative. This first survey is only the beginning. But there is no purpose to continue if the results are below expectations. Stay tuned for more as we gradually , but swiftly, move forward.
In the event that a large number of stakeholders would be in favor, we would eventually reach out to AMC management to instruct them to organize the practical implementation of a shareholder loan agreement. We believe if AMC publicly supports the initiative and takes the lead it would build substantial trust. They already have channels available to connect with the stakeholders community. They have the platforms. They have the power to reduce or eliminate the overhead costs and monitize every dollar provided. The sooner they act, the better.
A major difference versus some of the other ways of supporting our company is that we are 100% in control of this process with no other participants being involved. That is a major difference.
We believe that even outside the AMC stakeholder community, there could be support for this initiative to serve as a precedent, and we certainly invite also non-direct stakeholders to come forward and support us.
"Imagine what AMC could do if it were to save 365M USD a year on interest payments " #amcharity
Yes
Yes, many things obviously have to be worked out. And there is no guarantee that even if many stakeholders would support this that it will come to live. But let's try.
Yes, this is maybe a naïeve take. This simple idea has been around for more then a year and maybe even someone already tried it before ( ? ). But, regardless of the result, I did my part.
Yes, having near zero-interest loans does not solve all of AMC problems. But it does create a window of opportunities going forward.
Yes, this is very ambitous. Maybe unrealistic. But it's simple and understandable for all. We believe that generating some public debate around it , would already be benificial to our common cause.
Yes, the numbers are pure theory. And we definitly need a lot of amcharity ( 4M /1000USD ). And for many of us that is a large amount of money to put on the sideline, even if you love the idea. But let's make every dollar count. The potential direct and indirect benifits could easily offset the costs -- without any guarantees of course -- . So go out there, and launch your "AMC 1000USD" campaigns.
Yes, if this fails miserably, many are waiting to tell us how stupid we really are. So be it. And it will raise questions about some of the narratives that are circulating. As such, it could turn out to have a negative impact for out cause.
Yes, if things move, amcharity will reach out for practical help to the community for the next steps. Having a series of votes going forward seems like the most fair approach as the general principle, but obviously, it's very sensitive to fraud. I'm sure the community has answers to these challenges ( privacy versus usability versus some form of proven identification versus commitment )
"Can Mainstreet surprise Wallstreet, again ? Let's pounce. " #amcharity
NO
No, this is NOT financial advise. No, this is NOT investment advise. These are the ideas of a private individual stakeholder. Do your own due diligence.
No, this is not the opinion or idea at this point, from any offical AMC entity. We do not know what their point of view will be. We can only hope they share our ideas. And if we represent enough votes, we decide.
No, the loans would probably not be safe in the event of a bankruptcy. They would probably be subordinate to many other higher priority payables. You could loose all of it.
No, we have currently no detailed view upon the legal or tax implications for the individual nor the company. But I refuse to believe there would be no legal way to further assist our own company when times are challenging. I hope you do too.
No, I don't have a lot of information around the practical roll-out of a shareholder loan. But if you search on it, you will find some rare precedents.
No, this is by far not a professional site. Nor does it need to be. The only purpose is to sense if enthusiasm can be found via simple polls. Every subsequent step will become more detailed until we are ready for a formal handover of organizing the shareholder loan to AMC.
No, in no way there is an intention to monetize this initiative in any other way then to have a positive contribution to the value of our company. Social media channels will only be used to spread the word. Hopefully as viral as the virus that nearly destroyed our company.
If mildly succesfull, expect the expected. FUD, more FUD and nothing but FUD. Expect impersonation. Expect flexperts. Expect third party side-kicks etc..Expect it all. We can take it.
No, I'm clearly not a native English speaker. Please let me know if formulations sound strange or correct my spelling. It's not the focus but anyway, let's try.
"Imagine the wave" #amcharity
ABOUT
I'm an EU resident and involved for more about 2 years as a stakeholder in the AMC / APE community. With various AMC/APE equity positions during that time and, at times, some trading positions. I follow the story and I'm charmed by the power of the community challenging the powerhouses. No single market participant should be able to decide the fate of a company by simply having the right amount of firepower.
I've witnessed sceptics turn into fans and back into sceptics. It's life. You make your decision. But take ownership of what you can do ( instead of blaiming all the things that you can't do ). And fight back with the same weapons ( This is a metaphore. No violence. )
To be clear, in the grand scheme of things, I'm a nobody , and happy to be one. And I wish to keep it like that. I seek no further exposure beyond this initiative.
I'm old enough to not needing this, and I might regret doing it for whatever reason I didn't think about. I guess it's only because I have no partner that calls me an idiot, that I went along.
I have a direct stake at time of writing in one or more of the AMC equities.
I have no public take on the many other spaces and persons that exist and report, comment and monitize upon the "AMC community" story.
I have no public take on the actions of our management. Sometimes I agree, sometimes I disagree.
GLTA. GLTAmcharity.