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Liberty Media seeks judgment to allow split-off, related exchange offer for 3.125% exchangeables
By Jennifer Chiou
New York, Aug. 6 - Liberty Media Corp. announced that it and subsidiary Liberty Media, LLC have filed suit in the Delaware Court of Chancery against the Bank of New York, the trustee under the indenture governing Liberty Media, LLC's public debt.
According to a news release, the companies are seeking a declaratory judgment by the court that the previously announced plan to split-off the businesses, assets and liabilities of Liberty Media Corp.'s Liberty Capital and Liberty Starz tracking stock groups will not constitute a disposition of all or substantially all the assets of Liberty Media, LLC under the indenture.
As announced on June 21, the company plans to offer new debt securities in exchange for Liberty Capital Group's 3.125% exchangeable senior debentures due 2023 in connection with the split-off.
The release said that the suit was filed in response to assertions made by a law firm purporting to represent holders of a substantial block of Liberty Media, LLC's debt.
The completion of the split-off is conditioned on, among other things, the resolution of the lawsuit.
The new debt securities are to be issued by a new company to be formed from the Liberty Capital and Liberty Starz tracking stock groups. Liberty Media is splitting off these groups from its Liberty Interactive tracking stock group.
The split-off is expected to occur in late 2010 or early 2011.
Englewood, Colo.-based Liberty Media owns interests in electronic retailing, media, communications and entertainment businesses.
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