Lions Gate: New York Supreme Court denies Icahn Group injunction

By Caroline Salls

Pittsburgh, Dec. 9 - Lions Gate Entertainment Inc. said the Supreme Court of the State of New York has denied the Icahn Group's motion for a preliminary injunction regarding the company's deleveraging transaction.

According to a company news release, Lions Gate believes that the transaction, which resulted in a $100 million reduction of its debt, supported the best interests of the company and its shareholders.

As previously reported, In addition, the Icahn Group sought preliminary and permanent injunctions in the New York State Supreme Court rescinding Lions Gate's note exchange and the issuance of shares to director Mark H. Rachesky's fund.

The injunction would have prohibited the defendants from voting their shares in any election of directors or other shareholder vote and awarded compensatory and punitive damages to the Icahn Group.

As a result of the New York court's ruling, Lions Gate said Rachesky will be able to vote all of his shares at the 2010 annual shareholder meeting, which is scheduled for Tuesday.

Lions Gate Entertainment Inc. is a Santa Monica, Calif.-based subsidiary of Lions Gate Entertainment Corp., which is a filmed entertainment studio with headquarters in Vancouver, B.C.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.