AMC-APE Spread Widens as Court Ruling Muddies Conversion Bet (1)

The spread between AMC Entertainment Holdings Inc.’s common-stock price and its preferred shares widened on Thursday, reversing its narrowing trend earlier this week.

AMC’s common stock rose 21%, while its preferred shares — listed under the ticker APE — fell 13%. That broadened the gap between the two shares to around $3.41, a jump from the $2.34 that it had closed at on Wednesday. AMC bonds also dropped.

Delaware’s Court of Chancery sent an unexpected blow to traders betting an expedited conversion between the two units after denying the movie theater operator’s motion to lift a status quo ...