Financially troubled American Motors reported a $52-million loss for the second quarter and proposed a financial restructuring to raise cash. AMC said it would sell publicly 8 million shares of convertible preferred stock to raise $187 million. A company statement disclosed that some of the cash may be needed to keep AMC's vital vehicle development programs on track.
It would be the first time that any AMC preferred stock has been in public hands since 1979, when the French auto maker Renault bought into AMC, the company said.
Renault's 46.1% common stock ownership, through which it controls AMC, would be unchanged, AMC spokesman Edd Snyder said.
However, since the preferred stock offering would change Renault's total holdings, stockholder approval is required. AMC scheduled a special meeting for Aug. 13.
The second-quarter 1986 loss was an improvement from the $70.4-million loss of last year's second quarter, which included the considerable costs of layoffs and firings that were part of a 25% cut in internal budgets in the spring of 1985.