National CineMedia (NASDAQ:NCMI) stock is on a wild ride Wednesday morning as investors react to restructuring news.
Shares of NCMI stock started to fall in after-market trading after the company revealed a voluntary Chapter 11 filing. The company is going through this to enact its restructuring support agreement (RSA) with secured lenders.
The big news here is the company will convert its current debt into equity through this RSA. The restructuring will result in the creation of NCM LLC, which will handle all of the movie theater advertising company’s contracts.
Tom Lesinski, CEO of National CineMedia, said the following about the news:
“Today’s transactions will position us to deliver the strong results our advertisers and cinema partners have come to expect from us today and well into the future. We are entering this process with the overwhelming support of our secured lenders and key stakeholders, which we expect will enable us to swiftly and responsibly emerge as a stronger company.”
Other NCMI Stock News
Investors will also keep in mind that this news follows a rally yesterday. Shares of NCIM stock jumped as much as 111% after AMC Entertainment (NYSE:AMC) revealed a stake in the company.
With today’s bankruptcy news, shares of NCMI stock are seeing incredibly heavy trading. As of this writing, more than 21 million shares of the stock have changed hands. That’s a massive surge compared to its daily average trading volume of about 4.8 million shares.
NCMI stock is up 74.7% during pre-market trading after seeing a fall earlier.
There’s plenty of other stock market news traders need to know about below!
We’ve got all of the hottest stock market news investors need to know about on Wednesday! That includes what has shares of PLx Pharma (NASDAQ:PLXP), Altamira Therapeutics (NASDAQ:CYTO), and HeartCore Enterprises (NASDAQ:HTCR) stock moving today. You can find all of that news at the following links!
More Wednesday Stock Market News
- Why Is PLx Pharma (PLXP) Stock Down 32% Today?
- Why Is Altamira Therapeutics (CYTO) Stock Up 64% Today?
- Why Is HeartCore Enterprises (HTCR) Stock Up 141% Today?
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
