Time Warner Preps for Possible AOL Spinoff

NEW YORK: Time Warner is seeking new credit terms from some bondholders in a move that could be paving the way for a spinoff of its Internet unit, AOL.

The conglomerate said yesterday that it had begun a consent solicitation to amend indentures governing $12.3 billion in debt securities, which would relax certain restrictions on transfers of assets at AOL. The company is offering each bondholder that agrees a payment of $5 for each $1,000 principal amount of debt. HBO is being used as collateral.