AMC rallies on filing revised stock conversion settlement plan
24/07/2023 10:42
** Shares of theater chain AMC Entertainment AMC.N jump
61.4% to $7.10 premarket
** CEO Adam Aron said on Sunday co filed a revised petition
for a stock conversion plan to address the Delaware court's
concerns over other shareholders
** AMC had proposed a plan to allow it to convert preferred
stock to common stock and issue millions of new shares
** Delaware Vice Chancellor Morgan Zurn on Friday denied
approval to a settlement which would provide AMC common stock
holders with shares worth an estimated $129 mln, since it would
also settle potential claims by preferred shareholders who were
not represented in the lawsuit
** AMC was sued in February by investors over how the
shareholder vote on the plan was conducted
** AMC's preferred shares APE.N fall 7.8% to $1.66 in
trading before the bell
** Popular with retail investors on social media, AMC has
risen 8.1% this year as of last close, compared with a 27.7%
increase in APE
(Reporting by Bansari Mayur Kamdar in Bengaluru)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter:
@BansariKamdar;))