AMC Networks, Cablevision in deal to allocate $700M for VOOM settlement

theflyonthewall.com

As previously disclosed, on October 21, 2012, Cablevision Systems Corporation (CVC) and AMC Networks (AMCX) settled the lawsuit entitled VOOM HD Holdings LLC against EchoStar Satellite LLC, predecessor-in-interest to DISH Network L.LC (DISH). On April 8, Cablevision and the company entered into an agreement to allocate the proceeds, including the $700M in cash received from DISH pursuant to the settlement. As previously disclosed, the parties had previously entered into a Letter Agreement dated as of June 6, 2011, with respect to the allocation of any proceeds received pursuant to the settlement. The principal terms of the DISH Proceeds Allocation Agreement are as follows: Cablevision will receive $525M of the settlement funds and AMC will receive $175M of the settlement funds in connection with the allocation of cash and non-cash proceeds received in the Settlement in accordance with Section 4 of the VOOM Litigation Agreement. AMC shall promptly pay to Cablevision $175M of the $350M that was previously disbursed to it pending a final determination of the allocation of the settlement funds. AMC shall be entitled to retain the remaining balance of settlement funds previously disbursed to it in the amount of $175M. Cablevision shall be entitled to retain all of the settlement funds previously disbursed to it in the amount of $350M. Comments taken from an 8-K filing.

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