Icahn Seeks Sanctions In Blockbuster Bondholder Suit

Law360, New York (April 12, 2011, 5:08 PM EDT) -- Former Blockbuster Inc. board member Carl Icahn sought sanctions on Monday against a Blockbuster bondholder that launched a short-lived and allegedly abusive suit in New York over Icahn’s maneuvers to obtain senior debt in the bankrupt movie rental chain.

Lyme Regis Partners LLC’s unsuccessful adversary proceeding against Icahn was frivolous, filed merely to harass the billionaire investor, according to the motion lodged in the U.S. Bankruptcy Court for the Southern District of New York.

Judge Burton R. Lifland dismissed Lyme Regis’ equitable subordination case in March,...
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