Judge Nixes Blockbuster Creditor's Icahn Probe Request

Law360, New York (December 16, 2010, 5:25 PM EST) -- The judge overseeing the bankruptcy of Blockbuster Inc. denied on Thursday a lower-tier bondholder's request to conduct discovery into billionaire Carl Icahn's relationship with the debtor and his dealings with the company's counsel from Weil Gotshal & Manges LLP.

Judge Burton L. Lifland ruled in the U.S. Bankruptcy Court for the Southern District of New York that the subordinate bondholder, Lyme Regis Partners LLC, could not pursue document requests or subpoena Icahn under Chapter 11 bankruptcy rule 2004.

The judge further agreed to a stipulation that...
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