AMC’s APE Stock Conversion Accord Upheld by Delaware High Court

A settlement allowing AMC Entertainment Holdings Inc. to proceed with a stock conversion opposed by its meme stock base last year was affirmed Wednesday by Delaware’s highest court.

A one-page order signed by Chief Justice Collins J. Seitz Jr. didn’t elaborate on the Delaware Supreme Court’s reasoning for upholding the Chancery Court’s ruling.

The conversion proposal drew a challenge in Chancery Court from a pension fund and an individual investor, who subsequently negotiated the nine-figure settlement that allowed AMC to move forward with its plans to recapitalize.

The dispute centered on the AMC Preferred Equity units, or APEs, that AMC ...