AMC Stock Drops Despite ‘Path to Debt Elimination.’ APE Units Are Taking Off.

AMC Entertainment Holdings stock was falling Monday in the face of what may be a game-changing move to address its heavy debt burden. Investors may not like the medicine needed to clear up the movie theater chain’s significant debt.

AMC (ticker: AMC) stock fell 8.5% by midday after news from the company late Friday. AMC said in a securities filing that it plans a March 14 special meeting of shareholders in which it hopes to usher through an overhaul of to its capital structure—a plan analyst Eric Wold at B. Riley Securities called “a massive equity path to debt elimination.”