Bondholder Files Appeal in Liberty Spin - Multichannel

Bondholder Files Appeal in Liberty Spin

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A day before the deadline for an appeal was set to expire, Bank of New York Mellon Trust has filed an appeal in Delaware Chancery Court that will delay the planned spin of the Liberty Capital and Liberty Starz tracking stocks for at least a few more months.
Bank of New York had tried to block the spins, claiming that they constituted a disposition of assets and would harm bondholders like itself. While the court ruled in May against the bondholder, Liberty noted that they had the right to file an appeal within 30 days. That expiration date was June 8.
Liberty shareholders approved the deal at a May 23 special meeting. Liberty had said that a deal would not be completed before the court issued an non-appealable judgment.
In a statement, Liberty said it has requested expedition of the appeal and hopes to complete the spins before Sept. 23. That is the last trading day on which Liberty can competed the spins without having to receive another shareholder vote.
Liberty first proposed spinning off Liberty Capital (which includes several passive investments in media companies and a controlling interest in the Atlanta Braves Major League Baseball team) and Liberty Starz, which includes the Starz LLC premium channels in 2010. While Liberty Capital and Liberty Starz will remain tracking stocks after the deal is complete, Liberty Interactive, which includes QVC Inc., Provide Commerce, Backcountry.com, Buyseasons, Bodybuilding.com, and interests in IAC/InterActiveCorp and Expedia, would become an asset-backed stock.

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