The hearing to consider converting all AMC Entertainment Preferred Equity Units (NYSE:APE) into AMC stock has been scheduled for June 29 and 30 at the Leonard L. Williams Justice Center in Wilmington, Delaware. Earlier this year, shareholders of AMC and APE voted in favor of increasing authorized shares to 550 million from 524.17 million and an AMC 1-for-10 reverse stock. Together, these two proposals would allow for the conversion of APE into AMC.
However, two punitive class actions put a halt to the conversion and the approved proposals. The two class actions, Allegheny County Employees’ Retirement System v. AMC Entertainment Holdings, Inc. and Munoz v. Adam M. Aron, et al., claimed that APE and AMC shareholders should vote separately on company proposals or that APE shareholders should be enjoined from voting on AMC proposals. These two class actions were later consolidated as one.
I myself have gotten off of the AMC train after noticing so much irregular movement in its pricing. Last year's annual meeting told me alot about the leadership of AMC and its board members. They all seemed to sell their positions and since then we are seeing NO movement upward. The latest AMC earnings report was very good and the results had no effect on the stock price.
