AMC Shares Surge as Judge Denies APE Deal in Surprise Ruling (4)

AMC Entertainment Holdings Inc. was blocked by a Delaware judge Friday from converting its controversial APE preferred units into common stock, a ruling that sent the company’s class A shares surging up to 100% in after-hours trading.

Vice Chancellor Morgan T. Zurn rejected a nine-figure settlement that would have let the conversion proceed while handing out extra stock to mitigate the dilution of ordinary shareholders.

The agreement’s precise value, which is upwards of $100 million, had fluctuated with the company’s stock price. AMC shares were trading at $8.80 after closing at $4.40. The APE units, meanwhile, sank as much as ...