Request Legal Help Now - Free
Advertisement
 

Failed Business Sale

Wilmington, DE: (Apr-04-08) R2 Investments LDC brought a lawsuit against billionaire Carl Icahn, Chairman of Icahn's Elk Associates LLC, and XO Holdings Inc. XO, based in Herndon, VA, sells telecommunications services to business customers, including local and long-distance voice, data and Internet access, and has 6,700 miles of fiber-optic cable in 37 US cities.

The suit alleges that Icahn unfairly used his majority stake in the phone company to force the $700 million sale of its Web-access business to Elk Associates LLC., to allow the company to repay debt to another Icahn-related entity. Sources stated that the two parties agreed to resolve the dispute by entering into a settlement agreement.

Under the terms of the deal, Delaware Chancery Judge Leo Strine Jr. granted shareholders' lawyers $8 million to cover legal fees and expenses. Further, as part of the agreement, Icahn agreed to waive certain terms of XO Holdings' original $500 million senior secured term loan through the due date of July 15, 2009, and to reduce interest payments by about $9 million. [DELAWARE ONLINE: XO CAN SETTLE SUIT OVER FAILED SALE OF UNIT]


Legal Help

If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below.
Published on Apr-7-08

No cost PR for your verdicts and settlementsPublish your verdicts and settlements at no charge

READ MORE Business Settlements and Legal News

ADD YOUR COMMENT ON THIS ISSUE

Fields marked * are mandatory. Please read our comment guidelines before posting.

*Name:

Note: Your name will be published with your comment.

*Email Address:

Your email will only be used if a response is needed.
*Your Comment:

Are you the defendant or a subject matter expert on this topic with an opposing viewpoint? We'd love to hear your comments here as well, or if you'd like to contact us for an interview please submit your details here.
Request Legal Help Now! - Free