AMC’s Revised Stock Conversion Plan Is Approved by Court
- Court’s approval clears way for AMC’s recapitalization effort
- Cinema chain faced Chapter 11 threat in wake of pandemic
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AMC Entertainment Holdings Inc. won court approval of a stock conversion plan that had spurred a shareholder lawsuit and cast a cloud over the movie theater chain’s efforts to secure new financing.
The settlement, approved on Friday, includes extra shares for individual investors, thousands of whom had opposed it, citing the dilution of their shares among other concerns. Many of them fueled the pandemic-era “meme stock” rally that saved AMC from a bankruptcy filing.