AMC Stock Falls 7% After Debt Deal: Meme Stock Mania Over?
AMC Entertainment Holdings Inc. shares tumbled as much as 9% after the company announced a debt restructuring plan that includes converting notes into equity, diluting existing shareholders. The cinema chain struck deals with creditors to swap $143 million of exchangeable notes for 79.8 million common shares, with an additional $195 million potentially convertible later.
Benchmark analyst Mike Hickey noted the transactions improve liquidity and extend maturities but warned of near-term dilution risks. The MOVE marks a stark reversal for the meme-stock darling, which saw retail investors propel its shares during the 2021 frenzy. Now, with debt conversions looming and no apparent catalyst from social media traders, the speculative fervor appears exhausted.
