After the conversion settlement, AMC stock declines while preferred units increase.

14 August (Reuters) Fears that the ratification of a revised stockholder settlement will allow the business to issue more shares in order to raise capital and so dilute.

The value of each common share caused a 35% decline in AMC Entertainment's (AMC.N) share price on Monday.

The common shares fell to $3.45, levels reached just before the January 2021 meme stock bubble, when retail traders inflated the stock on social media sites like Reddit.

The price of the "APE" preferred stock units, which trade at a substantial discount to common shares, increased by 15% to $2.05.

As part of the agreement, AMC will give common stockholders stock valued at an estimated $129 million in order to resolve any potential legal disputes relating to a stock conversion plan.

Three weeks after the judge rejected an earlier iteration of the settlement, it has now been approved.

The decision enables AMC to carry out its March-announced plan to convert preferred share units into common stock.

perform a one-for-ten reverse share split, and perhaps sell additional shares in order to reduce some of its $5.1 billion in debt. 

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