On Wednesday, a U.S. court denied AMC Entertainment Holdings Inc. (AMC.N) a status quo ruling to convert its preferred stock into common shares.
“The parties present no good cause to lift the status quo order,” Delaware Chancery Court judge Morgan Zurn wrote.
AMC jumped 13.4% in premarket trade on Thursday, while preferred APE stock fell 10.5%.
AMC investors sued the firm and its directors for breaching a law by generating preferred shares to “eviscerate” the voting power of ordinary shareholders who opposed the issue of additional shares.
On Monday, AMC announced a binding deal with some investors and will petition a judge to lift a status quo order to complete the stock conversion.
