Judge Blocks ICAHN Tender for Reliance Group Bonds

January 9, 2001

A federal judge on Monday temporarily blocked Carl Icahn from proceeding with his tender offer for bonds of Reliance Group Holdings Inc. Judge Alvin K. Hellerstein of the U.S. District Court for the Southern District of New York issued a temporary restraining order after Reliance filed suit on Friday.

The suit seeks to prevent an Icahn affiliate, High River LP, from completing the $40 million tender offer or buying other Reliance debt. A hearing is scheduled for Friday. On Friday, Reliance’s board unanimously urged holders of its 9 percent senior notes reject a tender offer by High River for up to $40 million of the notes.

The tender is intended to block a bankruptcy restructuring that people familiar with the matter said Reliance is planning and that High River considers unacceptable.

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