AMC Entertainment Holdings, Inc. (NYSE: AMC) has faced stockholder class actions filed in the Delaware Court of Chancery, leading to consolidation and settlement efforts. However, this past Friday, the Court declined to approve the settlement as presented. In response, parties filed an addendum to address the Court's concerns.

AMC's CEO, Adam Aron, stressed the urgency of raising fresh equity capital. He emphasized the significance of addressing concerns raised in the Delaware Court of Chancery's ruling and acknowledged potential impacts of ongoing writers and actors' strikes on movie releases.

Aron highlighted the criticality of raising equity capital to safeguard AMC's long-term shareholder value and ensure the company's survival and prosperity. Citing examples of other companies facing bankruptcy and severe consequences for equity holders, Aron underlined the risks of financial collapse.

Expressing confidence in the company's ability to navigate challenges, Aron appreciated shareholders who supported the Board's approach. He reassured investors of AMC's dedication to raising equity capital to mitigate bankruptcy risks and secure a stronger future.

AMC Entertainment remains committed to raising equity capital while taking the Court's ruling seriously. Aron, AMC's largest retail shareholder, affirmed his alignment with shareholders and dedication to the company's success.

$AMC was trading at $6.11 in pre-market, reflecting an increase of $1.71 (+38.85%).

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