Icahn Partners LP v. Lions Gate Entertainment Corp. 2010 BCSC 1547
Ken McEwan, K.C. Acted for the Respondent Bondholder in Defence of an Oppression Claim Brought by an Unsuccessful Bidder in a Proxy Contest.
The bondholder held significant debt in a media and entertainment corporation. The petitioner sought to set aside a series of transactions that resulted in the conversion of the bondholder’s debt to equity and the subsequent sale of that equity to an investment fund. The petitioner argued that these transactions were oppressive and unfairly prejudicial to the petitioner, as they diluted the petitioner’s holdings and thereby impeded a takeover claim. The court accepted the bondholder’s arguments that the transactions were in the best interests of the corporation, and dismissed the oppression claim. Read case here.