AMC investors said to have approved 1-for-10 reverse split, share conversion
AMC Entertainment $AMC Entertainment(AMC)$
The approval is a step to enable the theater chain to convert a recently issued series of preferred shares, APE, into common stock, Bloomberg reported.
The Allegheny County Employees' Retirement System had filed a class-action complaint in Delaware's Court of Chancery against AMC and its board members, seeking a temporary restraining order against the Mar. 14 conversion vote.
The plaintiffs accuse AMC and its board with violating Delaware General Corporation Law and breaching fiduciary duties.
The injunction hearing was set for Apr. 27, and the Mar. 14 vote on the conversion was allowed to take place.
AMC will have the flexibility to issue new stock, exchange debt for shares or make acquisitions - pending the outcome of the injunction hearing.
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