Icahn Denied Preliminary Injunction by NY Supreme Court

SANTA MONICA/VANCOUVER: The Supreme Court of the State of New York has denied the preliminary injunction sought by Carl Icahn regarding Lionsgate’s debt-for-equity swap.

Icahn has gone before two courts, one previously in Canada, to argue that the deleveraging transaction was meant to dilute his stake in the studio. Lionsgate’s board of directors stand firm that the move was made to reduce debt.

Lionsgate said it is "pleased" with the court’s decision. "The company believes that the transaction, which resulted in the reduction of Lionsgate’s debt by approximately $100 million, supported the best interests of the company and its shareholders."

As a result of the decision, company director Mark Rachesky will be allowed to vote all of his shares at Lionsgate’s 2010 annual general meeting of shareholders. Lionsgate is encouraging all shareholders to vote in favor of the company’s director nominees, and has urged shareholders to "discard any proxy materials shareholders may receive from the Icahn Group."

Lionsgate’s 2010 annual general meeting of shareholders is scheduled for December 14.