AMC Gets Nod to Seek Loss Coverage in Insurer Settlement Dispute

AMC Entertainment Holdings Inc. got one step closer to getting an insurer to cover a settlement with investors, even though it issued the payout using shares of company stock, when a Delaware judge ruled the entertainment giant incurred losses from the deal.

Midvale Indemnity Co. argued it wasn’t on the hook to cover part of AMC’s settlement, which ended litigation challenging a plan to convert preferred equity units into common stock, but Judge Meghan A. Adams in the Delaware Superior Court rejected that argument in a Friday ruling.

Company-issued stock shares constitute losses subject to coverage by Midvale, Adams said, ...