AMC, APE Holders Reach $100 Million Deal in Conversion Fight

AMC Entertainment Holdings Inc. has reached a roughly $100 million settlement with retail investors who challenged the company’s plan to hand over control to holders of preferred equity units known as APEs.

The deal—announced Monday by attorneys for the shareholders leading the litigation—will let AMC convert the APE shares into common stock, a move that will effectively sideline the ordinary stock traders who rescued the company from the brink of bankruptcy after the pandemic shuttered cinemas.

In exchange, owners of AMC class A stock—who were set to see their collective stake reduced from 100% to 35%—will receive an additional share ...