DISTRESS WATCH: AMC Entertainment Rallied After Settlement Deal

A settlement between AMC Entertainment Holdings Inc. and some its creditors has lifted the movie theater chain’s biggest bond from distressed trading levels.

Last week, the Kansas-based company saw its $950 million notes due in 2029 trading above 80 cents on the dollar for the first time since March. The company agreed to end litigation with bondholders over last year’s restructuring and raise $223.3 million of new money. The proposal is still pending approval from a majority of its creditors.

AMC helped drive a decline in the pile of troubled corporate debt worldwide. The total amount of distressed bonds ...