AMC Entertainment Investors Back Share Increase, Reverse Split

AMC Entertainment Holdings Inc. common stock and preferred shares sank after investors approved a series of steps that the movie theater operator has said will help it raise cash and reduce debt.

Voting at a special meeting on Tuesday, investors backed plans to increase the company’s shares outstanding and implement a 1-for-10 reverse stock split. The two proposals will allow the company to convert a recently issued series of preferred shares, known by their trading symbol APE, into common stock, although the moves are being challenged in court.

Taken together, the measures should give AMC the flexibility to issue new ...