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AMC says it has reached agreement on shareholder lawsuit against APE conversion

AMC Entertainment Holdings Inc. $AMC Entertainment (AMC.US)$ said late last week that it has reached an agreement to settle a lawsuit with shareholders regarding a proposed stock conversion.

"AMC recently reached an agreement to settle a hypothetical class action lawsuit regarding the proposed conversion of AMC Preferred Equity Units (APE) into common stock and a share pooling plan," AMC said on Saturday night on its Twitter account.

In order to pay off its large debt, AMC had proposed converting AMC preferred equity units into common stock, as well as launching a 10-for-one share pooling plan and the ability to sell more shares. Shareholders approved the move in March, but a judge's order prevented it from taking effect.

The settlement must still be approved by a Delaware Court of Chancery judge, and a hearing is scheduled for June 29-30, with a ruling to be announced at a later date. $AMC Preferred Equity Unit (APE.US)$
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