AMC Entertainment Holdings (AMC) shares plunged after a Delaware judge reversed her earlier decision and gave approval to the theater chain’s plan to convert AMC Preferred Equity (APE) units into common shares. The decision ends a shareholder lawsuit and paves the way for the company to rais🔜e much-needed capital. ꦛ;

Chancery Court Judge Morgan Zurn agreed Friday in an opinion that settlement terms between the company and the plaintiffs were fair because investors would receive additional shares of 澳洲幸运5官方开奖结果体彩网:common stock “to offset the dilutive effects” of the APE shares. Last month Judge Zurn said that the original plan waived too many potential claims against the company. The agreement provides ಞfor shareholders to get 1 share for every 7.5 they own.

What Does This Mean For AMC, APE Shareholders?

AMC said that after the decision it will commence a 1-for-10 澳洲幸运5官方开奖结果体彩网:reverse stock split on Aug. 24. That would be the last day of trading for its APE shares, which would be converted into common stock the next day.

Tꦕhe company said that following those steps, it will make a litigation settlement payment to all shareholders based on the court s🍌ettlement.

AMC launched the APE stock in August 2022 as the company struggled with surging debt and faced the potential of bankruptcy after pandemic restrictio♉ns sent movie▨ theater attendance plummeting. 

Shares of AMC Entertainment lost a third of their value Monday, falling to their lowest level since January 2021, just prior to the 澳洲幸运5官方开奖结果体彩网:meme stock craze that sent the stock soaring. The company’s APE shares also jumped then.