Antara Capital has just sold off AMC Entertainment (NYSE:AMC) and APE (NYSE:APE) stock according to its latest SEC filing.
The filing shows Antara disposed of all of its AMC stock and sold nearly 7 million shares of APE last week.
At the same time, the company acquired more than 4.4 million shares in put options for AMC Entertainment.
Antara Capital was able to not only capitalize from selling AMC stock but also from its price plunge after the selloff in put options.
AMC stock is currently down more than -10% in the past trading week.
In March, the company disposed more than 48 million APE shares valued at a whopping $72.4 million.
A month later, the company disclosed it was betting against AMC Entertainment while it sold company stock, something we saw yet again this month.
In May, Antara Capital disclosed it had another 55 million shares in put options valued at more than $277 million; one of the largest bets put against the movie theatre chain.
The company reported acquiring more than 2.7 million shares in put options in AMC Entertainment stock earlier this month as well creating a massive blow to retail investors.
AMC stock has not been able to catch a breather above the $5 level due to Antara Capital continuously selling; this was similarly happening in 2021 when Wanda Group kept selling shares around the $9 level.
Once Wanda Group was out completely, retail demand was able to bypass these sell walls; will the same happen today?
A New Lawsuit Has Now Been Filed Against Antara
A new lawsuit has now been filed against Antara in the wake of falling share prices.
Investors believe the hedge fund has taken advantage of its deal with AMC Entertainment, inevitably affecting all securities holders.
Antara Capital is now facing federal securities litigation seeking the return of its alleged short-swing profits.
“The lawsuit, filed by two AMC investors, accuses the hedge fund, its affiliates, and founder Himanshu Gulati of making more than $20 million on sales of APE units and AMC common stock purchased less than six months earlier.
Federal securities laws require corporate leaders and major stockholders to give such short-swing profits back to the company, a rule meant to curb insider trading,” says Bloomberg.
The hedge fund said in a court filing last month that it has been getting threatening phone calls from people claiming to be AMC stockholders.
That filing asked the Delaware judge to block the theater operator’s highly engaged base of retail investors from seeing confidential court files.
It cited concerns that additional disclosures could “threaten the health and safety” of Antara employees.
The judge ultimately gave the investors restricted access.
The new securities lawsuit was filed Tuesday in the US District Court for the Southern District of New York. The investors leading the case, Dennis Donoghue and Mark Rubenstein, said they made amend their roughly $20 million damages request as they learn more details about the trades they’re targeting.
The shareholders are represented by David Lopez of Southampton, N.Y., and Miriam Tauber of New York.
The case is Donoghue v. Antara Cap. Master Fund LP, S.D.N.Y., No. 23-cv-4985, complaint filed 6/13/23.
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About The Author
I Hope everyone at Antara Capital end up living in their cars.
When Ryan Cohen sold his BBBY I believe all that went back to Bbby? Let’s take that 20 million and then some
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