Time Warner Gets Bondholder OK on AOL Change

NEW YORK: Time Warner has won approval from bondholders of $12.3 billion in debt to amend covenants that restricted the company from spinning off AOL.

Each bondholder who consented will receive a payment of $5 for each $1,000 in debt securities.

Time Warner has come under pressure to dispose of its struggling Internet unit. Time Warner’s chairman and CEO, Jeff Bewkes, has signaled that dealing with AOL is next on the agenda, now that the spinoff of Time Warner Cable is complete. The company recently tapped former Google executive Tim Armstrong as the new chief executive of AOL.