AMC Entertainment Stock Slides After Hours, APE Units Rise: What's Going On?

AMC Entertainment Holdings Inc AMC shares traded higher Monday after the court rejected the company's proposed settlement with shareholders. Shares are pulling back after hours on new developments related to the case.

What To Know: In early April, AMC proposed a settlement with shareholders, which would have allowed for the conversion of APE units into common shares. The proposed plan also included a reverse stock split that would have diluted AMC shareholders. 

Vice Chancellor Morgan T. Zurn rejected the settlement on Friday, per Bloomberg, noting that the settlement could not be approved as submitted.

AMC sent in a revised settlement on Monday. After the market close, a new court document showed the deal is set to go back to the judge on an expedited timeline.

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AMC Price Action: AMC shares closed Monday up 32.95%, but were down 11.11% after hours at $5.85 at the time of writing, according to Benzinga Pro. Meanwhile, APE shares climbed nearly 10% after hours after closing Monday slightly lower. 

Photo: Paul Sableman from Flickr.