By Will Feuer
AMC Entertainment Holdings Inc. declared that unless and until it gets a favorable court decision,
it would not proceed with its plans for a reverse stock split or the conversion of its AMC Preferred Equity Units into Class A Common Stock. According to the company, on April 2,
AMC Entertainment and the plaintiffs named in the lawsuit reached a settlement to end their shareholder dispute and ask the court to overturn the status quo order.
The plaintiffs submitted an uncontested application to remove the status quo order on Monday. On Wednesday,
the application to remove the status quo order was rejected by the court. AMC Entertainment announced on Thursday that the business won't proceed with its plans to implement a share increase,
a reverse stock split, or the conversion of its APE units into Class A common stock until and until the court removes the injunction.
AMC Entertainment said that it will not yet make the Class A common stock litigation settlement payment as the term sheet contemplates.
In a securities filing, AMC Entertainment stated that it was still evaluating its options. In the premarket session, AMC Entertainment's shares increased by about 12% to trade at $4.50, while its APE units decreased by more than 12% to trade at $1.50.
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