AMC stock slips as APE hearing kicks off

AMC stock slips as APE hearing kicks off

 AMC Entertainment (AMC) stock fell 2% on June 29 as a hearing began over the fate of its APE (AMC Preferred Equity Unit) preferred shares.

The stock has been extremely volatile over the last week. It rose 10% on June 28 and has given back less than half that gain.

A Delaware Court of Chancery is being asked to approve a legal settlement to convert APE shares into common stock.

Investors who bought shares during its 2021 “meme stock” heyday allege the company rigged a shareholder vote approving the move.

The largest buyer of the APE shares, Antara Capital, has been selling off its stake over the last four months.

This has sent APE's price down 44%, against a 28% fall for the common.

A recent 13D filing shows Antara holding just 9.9% of APE, down from 28.7% in February

 While AMC has outlasted rivals like Regal Cinemas, which filed for bankruptcy last year, it is still losing money.

AMC expects revenue of $4.6 billion, still below its pre-pandemic take, despite Aron's efforts to boost sales by selling non-fungible tokens (NFTs) and popcorn through Walmart WMT.

The company now has less than a half-billion in cash, having lost $523 million in the last year. Long-term debt is $4.7 billion.