Wherein I do my level best to refrain from stating the obvious
Well done and thanks Chance (I say yet again).
Congrats on your work. However, (no snark intended!! ), you need an editor. I would suggest tightening up your articles. Very wordy and repetitive. It's like a 3 hour movie that should be 2 hours.
Chance what is the correct form of address when writing a letter to the Vice Chancellor?
In your view, as the only party opposing the motion is a pro-se Brian Tuttle, what basis does the judge have for rejecting the settlement if there is no one left prosecuting the AMC shareholder case?
I know you've previously said that even when you feel you have the pulse of _what_ the Court is likely thinking that the timing can be tough, but so far VC Zurn has responded fairly quickly so please forgive two questions about timing. 1) You said you suspect the parties are back at the negotiating table working on a new settlement the VC could approve. What changes would be necessary to get approval, and would they need to include a longer timeframe than the scheduled hearing? 2) If the hearing goes ahead as scheduled, what might cause VC Zurn to take more than, say, a few days to a week to rule on the matter?
I think the key to all these shenanigans is back on Monday. The settlement announcement was dropped along with the date for the Q1 2023 earnings call date and I don't think that is a coincidence. The idea that this settlement appears out of the woodwork roughly about the time that the company got its first hard look at its like garbo numbers for last quarter and its standing cash reserves probably sent some chills up some spines over in Leawood.
And if you look at it from that perspective I really do think a lot of the gimmicks AMC is pulling makes sense. The lack of reasoning given to VC Zurn to removed the SQO directly because its a sort of Schrödinger's bankruptcy situation right now and they don't want to speak that idea into existence by putting it as part of the reasoning in a court document. Then the price of AMC crashes and ~if~ they get out of this lawsuit then their is no equity to milk to stay afloat. They will simply move from the Delaware Court of Chancery to Delaware Bankruptcy court. Not sure if that is a walk or a bus ride over there, but I'm sure it would be a pretty quite one.
Plaintiff's obviously want to get paid for all their work including the lawyer and they have no interest of playing Rose Bukater to AMCs Jack Dawson on this lawsuit. So they really don't care what it takes. They want to hit the eject button, damn the torpedo's, all hands on deck. I mean line 31 in the unopposed motion spells this out "although Plaintiffs believed their claims to be strong...the class faced a real risk of recovering nothing." I mean I have a video even looking back at AMC's Q4 2022 balance sheet and cash burn rate and said they have two maybe three more quarters before bankruptcy gets pretty real. Well...this is the second quarter since Q4. I'm going to say my math is starting to show itself.
Add in this is being paid in share instead of cash and I think the pieces all come together. AMC called Plaintiff's lawyer saying they hit an iceberg (yes I will continue to labor this Titanic analogy). Plaintiff's immediately met up with them and in the fever of just trying to get this through. Throw up a Hail Mary to see if VC Zurn will just let this slide without them having to say the b word. It didn't work. Now they are going to have to figure out what they want to do from here.
By the way Chance and I understand that this is not where your motive lay your comments about the integrity of the Vice Chancellor provided comfort to the millions of AMC retail shareholders who were ambushed by APE and do not want this conversation and reverse split to happen. Anyone who things that this vote wasn’t rigged needs to understand that all shareholders residing outside of the U.S. and Canada are not able to vote in proxy votes (even Canadians face roadblocks) and look at the “novel” and different protocols put in place for APE votes vs AMC votes. This vote was more rigged than the 2020 U.S. Presidential election.
nice article. Does the notice period have to be over before the judge would approve the lifting of the status quo order and signing off on the proposed settlement? How likely is it that she would approve both on a contingent basis?