Restaurant operator Wendy's International Inc. on Thursday said a U.S. district judge in New York denied a noteholders' suit seeking to enjoin a planned spin-off of Canadian coffee shop chain Tim Hortons Inc, in which Wendy's is the majority shareholder.
The spin-off will proceed as scheduled on Friday via a dividend distribution, Wendy's said. The dividend will be distributed after the close of business on Friday, Wendy's said.
The noteholders' suit claimed the spin-off of Wendy's remaining stake in Tim Hortons violates the terms of Wendy's debt.
The fast-food chain currently owns 82.75 percent of Tim Hortons. It has planned to give its shareholders 1.3542759 shares of Tim Hortons common stock for every share of Wendy's common stock.