OAKVILLE, Ontario — Tim Hortons Inc. said Wendy's will respond to a minority noteholder lawsuit alleging the burger chain violated the terms of its stock spin-off.
According to a news release, in the lawsuit, filed in New York, plaintiffs allege Wendy's previously announced plan to distribute its remaining interest in Tim Hortons Inc. to shareholders on Sept. 29 violates the terms of the indentures governing Wendy's public debt.
The plaintiff noteholders are seeking to enjoin the spin-off. A hearing has been scheduled for Sept. 28 in the U.S. District Court in New York City.
Wendy's said this action is without merit and plans to vigorously defend its position.
Wendy's said it will not comment further on this matter until a decision is issued by the court.
