Court Ruling Widens Spread Between AMC and APE Shares

The gap between AMC Entertainment Holdings' common stock price and its preferred shares listed under the ticker APE widened after Delaware's Court of Chancery denied the movie theater operator's motion to lift a status quo order, days after the company reached a settlement with retail investors over the stock conversion. The ongoing court case has created uncertainty for risk arbitrage traders looking to capitalize on the spread. They have been betting that the price gap between the two share classes will vanish once the conversion goes through.