Bloomberg News

Liberty Media Reports Appeal in Bank of New York Bank Case

June 07, 2011

(Updates with Liberty Media statement in third paragraph.)

June 7 (Bloomberg) -- Liberty Media Corp. said Bank of New York Mellon Trust Company NA has appealed a Delaware Court of Chancery ruling that the pending splitoff of the Liberty Capital and Liberty Starz tracking stock groups won’t constitute disposition of the assets of Liberty Media LLC.

John C. Malone, the billionaire chairman of Liberty Media, won a ruling in April from Judge J. Travis Laster that his splitoff of the Capital Group and Starz Group won’t violate an agreement involving Bank of New York Mellon.

Liberty Media asked the Delaware Supreme Court to expedite the appeal “and hopes to complete the splitoff prior to Sept. 23, which is the last trading day” available under terms of the contract, the company said in a statement today.

Liberty sued the bank as bond trustee in August 2010 asking the Wilmington court to declare that the action wouldn’t be a disposition of assets upon which bondholders had claims.

The case is Liberty Media Corp. v. Bank of New York Mellon Trust Co., CA5702, Delaware Chancery Court (Wilmington).

--Editors: Steven Fromm, Charles Carter

To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.


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