July 24, 2023 at 11:14 AM EDT

Updated on

July 24, 2023 at 4:29 PM EDT

Traders burned Friday by an arbitrage bet on AMC Entertainment Holdings Inc.’s stock got a lifeline when the movie-theater chain revised a plan to convert preferred shares that may enable it to win legal approval for the move.

The company filed a new version of the settlement over the weekend in a bid to address the problems identified. That gave a reprieve to investors who were caught wrong-footed with bets that the conversion plan would sail past a legal challenge and the gap between the two share classes would close.