Last updated: July 23, 2023 at 11:18 PM ET
Initial publication: July 23, 2023 at 11:00 p.m. ET
AMC Entertainment Holdings Inc. has presented a revised proposal for its stock conversion plan after a judge on Friday rejected a settlement that would have greenlit the deal.
In a letter to investors posted to Twitter on Sunday, AMC CEO Adam Aron said an amended proposal was filed with the Delaware Chancery Court on Saturday to address the court’s concerns. If the court agrees, Aron hopes to implement the plan “as soon as possible.”
Movie theater…
AMC Entertainment Holdings Inc. has presented a revised proposal for its stock conversion plan after a judge on Friday rejected a settlement that would have greenlit the deal.
That was in a letter to investors Posted On Sunday, AMC CEO Adam Aron said on Twitter that an amended proposal was filed with the Delaware Chancery Court on Saturday to address the court’s concerns. If the court agrees, Aron hopes to implement the plan “as soon as possible.”
Cinema chain AMC AMC wanted to convert its so-called APE APE — or AMC Preferred Equity — preferred stock into common stock as part of its fight to deleverage. But Delaware Chancery Court Vice Chancellor Morgan Zurn on Friday rejected a settlement with opposing shareholders that would have allowed the conversion to go ahead. This caused AMC shares to surge more than 60% in after-hours trading on Friday.
“AMC needs to be able to raise equity,” Aron stressed in his letter on Sunday, saying that if the company is unable to do so, the risk of running out of cash in 2024 or 2025 increases.
“The risk of financial collapse is not bizarre,” Aron said, citing the bankruptcies of rival theater chain Cineworld/Regal and retailer Bey Bath & Beyond.
AMC shares are up 8% year-to-date but are down 54% over the last 12 months.