Wendy's noteholders allege indenture violation due to Tim Hortons sale, court refuses restraining order

By Jennifer Chiou

New York, Sept. 28 - Wendy's International, Inc. said the U.S. District Court in New York City denied a request from noteholders to issue a restraining order and a preliminary injunction to prevent Wendy's distribution of its remaining interest in Tim Hortons Inc. violates indenture terms.

The noteholders had claimed that the spin off violates indenture terms.

Ahead of the court hearing, the company said: "The plaintiff noteholders allege that Wendy's previously announced plan to distribute its remaining interest in Tim Hortons Inc. to shareholders on Friday, Sept. 29 violates the terms of the indentures governing Wendy's public debt.

"Wendy's believes this action is without merit and plans to vigorously defend its position."

Wendy's said the distribution will proceed as planned Friday.

Based in Oakville, Ont., Tim Hortons is a quick service restaurant chain. Dublin, Ohio-based Wendy's is also a quick service restaurant chain.

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