(Bloomberg) — AMC Entertainment (NYSE:) Holdings Inc. frequent inventory sank and its most popular shares rallied after buyers accredited a sequence of steps that the movie show operator has mentioned will assist it elevate money and scale back debt.

Voting at a particular assembly on Tuesday, buyers backed plans to extend the corporate’s shares excellent and implement a 1-for-10 reverse inventory break up. The two proposals will enable the corporate to transform a not too long ago issued sequence of most popular shares, recognized by their buying and selling image APE, into frequent inventory, though the strikes are being challenged in court docket. 

Taken collectively, the measures ought to give AMC the pliability to problem new inventory, change debt for shares or make acquisitions. The theater chain has struggled to remain afloat after borrowing closely after which seeing its enterprise collapse within the pandemic. 

The APE shares soared as a lot as 22% on the information, however have since pared that achieve and at the moment are up about 7% to $1.84. AMC frequent inventory sank 12% to $4.79, bringing the hole between the 2 asset lessons to $2.82.

“I would like to commend our shareholders for the wisdom exhibited in this meeting,” Chief Executive Officer Adam Aron mentioned. AMC mentioned the result of the vote would assist fight “naysayers and prophets of doom.”

Litigation in Delaware is difficult the share enhance. Aron advised buyers final month that no conversion will occur till the authorized points are resolved.

The firm, based mostly in Leawood, Kansas, is the biggest proprietor of cinemas on the planet. AMC averted chapter two years in the past after promoting new shares to meme-following day merchants. Those similar buyers pushed again in opposition to the corporate’s proposal to extend its share depend in 2021, and AMC dropped plans to take action. 

Read More: AMC-APE Bet Looks Like Easy Money, But It’s Perilous

Theater chains, together with Cineworld Group Plc which filed for chapter final 12 months, have been stung by a sluggish restoration in moviegoing. Ticket gross sales are working a few third under 2019 ranges, with many customers selecting to look at movies at house on streaming companies. 

The shareholder advisory companies Institutional Shareholder Services and Egan-Jones Proxy Services really useful that their purchasers help AMC’s proposals.