AMC Entertainment stock (New York Stock Exchange:asset management company) down 8% Thursday, but the move is 7.1% increase Calculated in units of AMC preferred stock (New York Stock Exchange:ape) – the reason these moves are up is another in a long list of reasons Legal development surrounding the theater chain’s most prominent new funding round.
AMC has been pursuing a plan to convert the APEs into AMC common stock, execute a reverse stock split, and then issue shares to raise new capital. The plan was challenged, and the lawsuit was quickly resolved, with the settlement being reviewed by the Delaware Chancery Court.
Late Wednesday, Corinne Elise Amato, the court-appointed special director to assess the hundreds of objections to the settlement, made a general recommendation that the court dismiss them. objection, thereby approving the settlement agreement.
The legal ups and downs of the case over the past few months have led to periodic price hikes (or falls) asset management company and ape, depending on the chance of the latter successfully converting to the former. At least on Thursday, that shift looked more likely than ever.
Next steps: Special master reports and recommended exceptions must be submitted by Wednesday 28 June.
This will be followed by two days of settlement hearings on June 29-30, after which the Vice-Chancellor will issue written comments making a final decision on the settlement.
More on the AMC/APE Transformation Drama