Shares in AMC Theatres dropped significantly after a Delaware Court judge approved a revised plan for parent company AMC Entertainment Holdings to convert AMC Preferred Equity Units (APEs) into common shares. The court ruling caused the values of AMC common shares and APE units to converge. AMC’s CEO, Adam Aron, emphasized the importance of the APEs-to-Stock conversion plan for the company’s survival. The conversion plan faced criticism from retail investors who believed it would dilute the company’s stock and decrease share prices. AMC had previously faced financial difficulties but experienced a surge in stock value due to retail investor interest. However, the company struggled to raise fresh capital subsequently.
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