More AMC Entertainment Lenders Join Talks to Settle Debt Lawsuit

More AMC Entertainment Holdings Inc. creditors have entered into private talks with the world’s largest cinema chain to resolve a lawsuit over last year’s sweeping debt restructuring.

A group of first-lien noteholders sued the company in September, claiming the deal stripped them of collateral and prioritized more-junior bondholders. Some of the disgruntled creditors subsequently agreed to confidential talks with AMC to settle the dispute, Bloomberg reported in March.

The negotiations have expanded to include some of those junior creditors, according to people familiar with the matter, who asked not to be identified discussing a private matter.

A representative ...