AMC Investor Challenges Court-Approved APE Stock Conversion Plan

AMC Entertainment Holdings Inc. faces a new challenge to its stock conversion plan, this time from a preferred shareholder who claims the hard-won deal shortchanges investors like him.

The movie theater chain just last week got approval from Delaware’s Court of Chancery to convert its preferred stock, known as APEs, to common shares. That settlement included extra shares for individual investors, though thousands of them opposed it due to concerns that their shares would be diluted.

Now one APE holder, Michael Simons, is asking the Chancery Court to declare the deal invalid, alleging it violates the rights of ...