My conspiracy free take. With strong meme interest, AA was able to complete a bunch of stock sales and keep AMC out of bankruptcy. But share authorization ran out, leaving over $5B in debt. 50% voter support is needed to pass a share increase authorization, and voters rarely vote, (only 33% of common voted on the very important 3/14 vote) he never could get it. Needing to keep the company out of bankruptcy, he split off 50% of the shares to preferred APE shares, which have a much high share authorization, making stock sales possible. And non voting preferred shares are automatically voted as yes, making any votes easy to pass. AMC went from around $20 to $10, and APE started at around $10. APE was never supported, and short sellers sensing bankruptcy have pummeled both AMC and APE down to where they are now. With dwindling cash AA was forced to make some stock sales at very adverse prices. Without the promise of APE shares converging, there was zero interest in investing. A vote was set up on 3/14 to authorize it. Here's where AMC and APE holders interest diverge, the convergence will be highly dilutive to AMC holders. Over whelming APE support and a strong majority support from the 33% of common that did vote (probably the common that also have APE shares) passed it. AMC holders in Feb successfully placed an injunction on the convergence which is in effect now, and a 4/27 hearing was set up. Their main legal point is 50% never supported further stock sales or the convergence, which is true. AA could counter argue his decisions were in the best interests of the survival of the company. Rather than leave the fate of the company to a judge, which could easily go either way, a settlement of 1 share for every 7.5 was offered. A judge in early April refused to fast track approval for the settlement, keeping the 4/27 hearing date in place, and allowing an objection period for other common holders to voice their concerns. On Thursday the judge authorized a Mr Tuttle to be added as a third party to lawsuit, in addition to Allegheny and AMC, (which will happen if not objected to by Monday). He is opposed to the settlement, but has also offered a remedy of his own. He also claims the Allegheny lawyers took all his legal work, and used it for their own case. That leaves us where we are now, a status hearing has been requested for next week to review a possible new settlement, and the 4/27 hearing has been canceled, things won't besettled by then.