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AMC Shares Surge as Judge Denies APE Deal in Surprise Ruling

Pedestrians pass in front of an AMC movie theater at night in the Times Square neighborhood of New York.Photographer: Amir Hamja/Bloomberg
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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.