AMC's Stock Skyrockets 53.6%

AMC Entertainment Holdings Inc. has submitted a revised proposal for its stock-conversion plan after a judge rejected a previous settlement. The plan aims to convert its so-called AMC Preferred Equity preferred units into common stock as part of its efforts to eliminate debt. The modified proposal was filed with the Delaware Chancery Court to address the court's concerns, and the company hopes to implement the plan as soon as possible if the court approves. AMC's stock skyrocketed 53.6% in premarket trades following the news. The rejection of the previous settlement had sent AMC shares surging more than 60% higher in after-hours trading. AMC's CEO, Adam Aron, emphasized the importance of raising equity capital to avoid the risk of financial collapse, citing the bankruptcies of rival theater chain Cineworld/Regal and retailer Bed Bath & Beyond. Although AMC shares are up 8% year to date, they have declined 54% over the past 12 months.