AMC, Pension Fund Defend APE Deal Opposed by Meme Stock Base (2)

AMC Entertainment Holdings Inc. broke its pledge not to convert its preferred equity units into common stock, one of the company’s “meme stock” investors said Thursday, objecting to a nine-figure settlement that would end litigation over the distressed cinema chain’s so-called APE units.

The proposed settlement would force investors to give up too much in exchange for too little, Ted Kittila of Halloran Farkas & Kittila LLP, an attorney representing settlement objector Rose Izzo, told Delaware’s Chancery Court.

The “grossly unfair” agreement gives AMC’s board a free pass for its bad behavior and sends the message that companies can engage ...