Shares of AMC are on track for their biggest percentage decline since April 23, 2023, when they fell 23.5%.
Shares of AMC Entertainment Holdings Inc. fell 10% Thursday, with the stock on track for its biggest percentage decline since April 23, 2023, when it fell 23.5%.
The stock gave back gains from last week’s rally early Thursday. Some 22.6% of AMC’s AMC, -7.95% float was shorted Thursday, FactSet data show.
AMC’s Preferred Equity units APE, +7.06%, however, rose 9.1% Thursday. In March AMC shareholders voted in support of the company’s proposal to convert AMC Preferred Equity units into shares of common stock in what the company’s CEO Adam Aron described as a “landslide victory.” The move was part of the company’s ongoing battle to eliminate debt.
AMC subsequently reached an agreement to settle a court fight with shareholders concerning the proposed stock conversion. A Delaware Chancery Court judge must approve the settlement proposal, with a hearing set for June 29-30. A decision is expected to be announced at a later date.
AMC shares have fallen 8.7% over the past three months, compared with the S&P 500 index’s SPX, +0.37% gain of 10.5%. The APEs have risen 27.9% over that period.