Citigroup's Catalyst Watch Triggers AMC Share Drop
AMC Entertainment Holdings Inc.'s stock fell after Citigroup opened a downside 30-day catalyst watch, anticipating downward pressure in the coming days. Investors are awaiting a chancery court decision that could allow the company to convert its AMC Preferred Equity units into common stock. Shareholders previously voted in favor of the conversion, but a class-action lawsuit delayed the process. Citigroup expects a ruling in favor of the proposal, which could lead to a convergence in the value of AMC common units and APE units, potentially putting downward pressure on AMC shares.