AMC Stock Deal Cost Nothing, Insurer Tells Delaware Top Court

AMC Entertainment Holdings Inc.'s decision to issue stock to settle investor litigation cost the company nothing and thus wasn’t a loss covered by its insurance, Midvale Indemnity Co. told Delaware’s top court.

The stock represented equity, not assets, and didn’t increase the size of the “equity pie,” Matthew Beato of Wiley Rein LLP, arguing for Midvale, told the Delaware Supreme Court during oral arguments Wednesday.

“There’s nothing that they lost by giving up these shares, all it did was dilute existing stockholders,” Beato said.

Justice Gary F. Traynor asked AMC whether the value of its assets were diminished by the ...