AMC Entertainment, the movie-theater chain, has reached a settlement with certain shareholders that will allow it to proceed with its plan to issue more common shares. The company seeks to convert its preferred equity units, known as Apes, into common shares and implement a 10-for-1 reverse stock split. These measures are aimed at raising capital to address the company’s debt. However, following this news, AMC’s shares dropped by 24% after-hours, reaching $3.98.
Wheels Up Experience Seeks Debt Restructuring
Wheels Up Experience, a private jet company, is reportedly in discussions with lenders regarding a potential debt restructuring to avoid bankruptcy. Earlier this week, the company expressed concerns about its ability to sustain operations without obtaining additional funding. As a result of these talks, Wheels Up Experience saw a 1.9% increase in its shares after-hours, reaching $1.14.
Nikola Initiates Voluntary Recall of Battery-Powered Trucks
Nikola, the electric-vehicle manufacturer, has announced a voluntary recall of 209 battery-powered trucks. This decision comes after an investigation indicated that a battery defect likely caused a fire at the company’s headquarters. The recall is specific to trucks that experienced issues related to a coolant leak within the battery pack. Importantly, the recall does not impact the production of Nikola’s hydrogen fuel cell electric vehicles. Following this news, Nikola’s shares declined by 2.1% after-hours, reaching $1.91.