The WSJ is reporting that TWX has asked bondholders for consent to amend covenants. The amendments essentially switch collateral on the bonds from AOL to HBO. The idea is to set up AOL for a spin-off as a debt-free company. I’ve written often on TWX noting that any divestiture of AOL will be positive for TWX shares as it will remove a no growth asset, free up management time, and increase the importance of well positioned cable networks and film and TV studio. TWX popped nicely last week post the spin of TWC. I think more upside lies ahead as long as cable networks ad growth gets no worse than flat to down low single digits. Here is everything I have written on TWX over the years.