<Bt-2z24>Tyco bondholders try to block split
NEW YORK (Bloomberg) — A committee made up of Tyco International Ltd. bondholders asked the trustees governing about $5.6 billion of debt to block the maker of ADT security systems from adding indentures that would allow it to split into three companies.Bondholders claim Bermuda-based Tyco, which, is offering about $95 million less than what they are entitled to under the indentures and that the split may leave them with fewer assets backing their securities, reducing their value.
"Their proposed liquidation transaction violates the indentures and they can't proceed without our consent," Andrew Rosenberg, a lawyer at Paul, Weiss, Rifkind, Wharton & Garrison LLP in New York who represents the bondholders, said yesterday.
Tyco, which also makes health-care and electronics products, last week said it took away bondholders' rights to approve its break-up plan after investors tendered only about a third of the debt securities.
Some $1.46 billion of the $4.60 billion of bonds governed by a June 9, 1998, indenture were tendered, and $331.8 million of $1 billion of notes governed by a separate indenture were tendered, Tyco said in a May 25 press release.
