Liberty Media Sues For Declaration That Split-Offs Aren't Asset Sales
August 9, 2010 at 5:22 AM (PT)
LIBERTY MEDIA CORP., which owns a substantial interest in SIRIUS XM RADIO, has sued THE BANK OF NEW YORK, trustee for LIBERTY MEDIA, LLC's public indebtedness. The company seeks a declaratory judgment by the DELAWARE Court of Chancery that LIBERTY's split-off of the businesses, assets and liabilities of tracking stock groups LIBERTY CAPITAL and LIBERTY STARZ do not constitute a disposition of all or substantially all the assets of LIBERTY MEDIA, LLC under the company's indenture.
The suit is responding to a purported debtholder's assertion that the split-offs are an asset sale. LIBERTY says that the split-off will be conditioned on resolution of the lawsuit and other conditions.