Liberty Media Corp, et al. v. The Bank of New York Mellon Trust Company, N.A.

Plaintiffs, and its wholly owned subsidiary, proposed to split off as a new publicly traded company ("SplitCo") the businesses, assets, and liabilities attributed to plaintiffs' Capital Group and Starz Group (the "Capital Splitoff"). At issue was whether plaintiffs pursued a "disaggregation strategy" designed to remove assets from the corporate structure against which the bondholders had claims and shifted the assets into the hands of plaintiffs' stockholders. The court held that plaintiffs were entitled to judgment declaring that the Capital Splitoff, as currently structured, complied with the Successor Obligor Provision in an indenture dated July 7, 1999 and therefore, plaintiffs were entitled to a declaration that the Capital Splitoff did not violate the Successor Obligor Provision.