Transfer of AMC shares postponed by a US court

A US court denied AMC’s deadlock request to open a conversion from preferred stock to common stock.

AMC EntertHldg Rg-A was submitted by a US court A freeze order to unlock a conversion from preferred stock to common stock. He himself has it The request was rejected yesterdayaccording Reuters on Yahoo Finance.

in february, AMC investors have sued the theater operator, accusing it and several of its directors of violating a law by creating preferred stock in an effort to “undermine” the voting power of common shareholders. They did not endorse the issuance of new shares.

the Favorite postswhich AMC trades under the symbol “monkey”, they have It has lost more than 70% since it aired in August as part of a plan Pay the debts accumulated by the company.

the Shareholders voted last month to increase the total number of authorized shares and carry out a reverse stock split of 1 share for 10, as part of a plan Convert your preferred shares into common shares.

Then, earlier this week, AMC announced that He has reached a binding agreement with some of the investors and will ask a judge to lift a related freeze orderTo speed up the inventory transfer process.

AMC said that as part of the agreement, They agreed to pay the plaintiffs 1 share for every 7.5 shares they owned. the plaintiffs attorney They said they were expecting The value of the shares paid to his clients amounted to more than $100 million.

The court wrote in the ruling that “the parties do not present a valid reason for lifting the freezing order.” Delaware District Judge Morgan Zorn.

AMC stock They rose 12.8% on Thursdaywhile the Preferred shares APE fell 10.5%.

AMC said in a regulatory filing Thursday She was continuing to evaluate next steps and would not pay the settlement until the court lifted the stay order.

“In this case, it is possible that if the company’s management has its way, the valuation of AMC stock and preferred APE will converge over time until APE becomes popular,” he said. Michael Ashley Shulman, Partner and Chief Investment Officer at Running Point Capital Advisors. “But if this happens too soon, another shareholder lawsuit is likely to follow.”

AMC EntertHldg Rg-A It is trading at $4.86 with a bullish gap and the 70-period moving average remains above the recent candles.