July 23 (Reuters) – The CEO of AMC Entertainment said on Sunday the company had filed a revised application for a stock conversion plan that would allow the company to issue more shares.
“Yesterday, along with the plaintiffs, we filed with the Delaware court an amendment to the statutory version surrounding the Delaware litigation settlement in an effort to address the concern expressed by the court,” AMC CEO Adam Aaron said in a letter to investors.
He emphasized raising capital for business survival and said that “to protect AMC’s shareholder value over the long term, we MUST be able to raise equity.”
Aaron also mentioned that in a special election on March 14, the majority of AMC’s common stockholders and preferred stockholders supported his views on the stock conversion.
On Friday, Delaware Vice Chancellor Morgan Zurn withheld approval because the deal would also settle potential claims from preferred shareholders who were not represented in the lawsuit.
The settlement had received more than 2,800 objections from shareholders.
The company was sued in February for allegedly rigging a shareholder vote that would allow AMC to convert preferred stock into common stock and issue hundreds of millions of new shares.
Supporters of the settlement want Zurn to evaluate the new version of the deal without seeking additional comment from AMC shareholders, according to a Bloomberg report.
(Reporting by Shubhendu Deshmukh in Bengaluru Editing by Chris Reese)