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Manoj Singhaniya
Aug 23, 2022
by Manoj Singhaniya

CEO Adam Aron Confirms, AMC and APE Stocks Halted 13 Times

AMC APE

Table of contents

  1. AMC Shares Falls
  2. Chapter 11 Bankruptcy Protection
AMC Entertainment's (AMC) new preferred dividend, which trades under the ticker name APE, was halted and fell more than 20% from its opening price minutes after making its debut on the New York Stock Exchange on Monday. The new shares, which AMC has referred to as "preferred equity units" and are "intended to have the same economic worth and voting rights as a share of common stock," started trading at $6.95 a share until being stopped at $9.49 later in the day.

If they trade as intended, the stand-alone AMC shares and the APE units should, in principle, behave similarly to a "two-for-one" stock split because they each grant common shareholders the same equity interest in the parent business. However, the possibility of their conversion, which is up for a vote by AMC shareholders on the board's suggestion, might lower the market value of AMC shares, adding to the downward pressure in early Monday trade.

AMC Shares Falls

In late-afternoon trading on Monday, AMC shares fell 41.5%, changing hands for $10.54 each. APE stock last traded 21% down at $5.50 per share. Compared to the stand-alone AMC share closing price of $18.01 on Friday, it would place the value of the shares as a whole at roughly $16.04 per share. The stand-alone commons shares, which effectively traded ex-dividend from the APE distribution, also put pressure on AMC shares.

Chapter 11 Bankruptcy Protection

The biggest rival of the movie theatre chain, Cineworld, acknowledged it is considering applying for Chapter 11 bankruptcy protection in the United States. Cineworld, a company in the UK that operates Regal theatres in the US, saw a record low on Friday. The group said Monday is one of its possibilities to pay off debts incurred due to the pandemic and its failed takeover of Canada's Cineplex. The Regal and Cineworld theatres still accept visitors and members and are open for business.

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stocks Shares AMC Entertainment Adam Aron $APE Chapter 11 Bankruptcy
CEO Adam Aron Confirms, AMC and APE Stocks Halted 13 Times
Manoj Singhaniya
Manoj Singhaniya is a professional digital marketing blogger. Have successfully delivered more than 500+ articles on content marketing, digital marketing, SEO, SMO, website design and development, etc. to educate, inform, as well as create a positive impact on worldwide users.

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