AMC, 'meme' investors to face off in court over stock conversion

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A months-long battle between retail investors and AMC Entertainment Holdings over a stock conversion plan will come to a head on Thursday at an unusual two-day court hearing in Delaware that may be critical to the cinema chain's survival.

over a stock conversion plan will come to a head on Thursday at an unusual two-day court hearing in Delaware that may be critical to the cinema chain's survival.

The conversion would dilute the common stockholders' ownership, but allow AMC to pay down some of its $5.1 billion in debt.raise capitalIt cannot carry out its plan to do so until the litigation has been resolved. Objections to class action settlements are rare but the court received more than 2,800 objections to the agreement.

in the first quarter and expressed optimism that box office sales would continue to pick up into 2024. The investors, a Pennsylvania pension fund and an individual shareholder, had initially asked Delaware Vice Chancellor Morgan Zurn to block holders of preferred stock from the vote which was structured in their favor.through "heavy-handed" tactics and "financial trickery," the settlement compensates common stock holders without risking AMC's future.

 

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