After the market on July 21, American theater chain $AMC Entertainment (AMC.US)$The application to convert APE preferred shares into common shares was blocked by a judge in Delaware, USA. This progress is seen as a huge and unexpected victory for retail investors, AMC US stocks surged more than 90% after the market, as of the current night time share price increase narrowed to 55%.
What happened?
In March this year, AMC Cinemas proposed to convert APE preferred shares into common shares, the purpose of this rational transaction is obvious: AMC can make a profit of $5 per share. But AMC's move will dilute the interests of retail investors who saved the company from the edge of bankruptcy.
The case led AMC to separate ways with many retail investors who were involved in the rebound of the “retail group stocks”, who pulled the stock price in the worst of the pandemic and saved the troubled theater chain.
Previously, about 70% of ordinary shareholders voting APE preference share switching plan said yes, but in fact the number of people involved in the vote is relatively small, other retail investors oppose the plan or simply do not vote on the company proposal. Hundreds of retail investors have written letters to the court against the settlement agreement.
Last Friday, the judge dismissed an earlier settlement.the ruling, beyond expectations of investors and analysts, returns AMC companies in a hurry to capital restructuring, and letInvestors who had previously short AMC had big trouble.
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