Wendy's

(WEN) - Get Report

spinoff of

Tim Hortons

(THI)

will proceed as scheduled Friday after a court hearing denied a request to block the move.

Certain Wendy's noteholders had been seeking to block the spinoff, but a New York court on Thursday denied in all respects the motion for an injunction, the burger chain said.

The ruling enables the spinoff, effected as a dividend, to occur after the close of business Friday. Wendy's shareholders will receive 1.354 shares of the Canadian doughnut chain.

Overall, the shares represent an 82.75% stake in Tim Hortons, and the dividend completes Wendy's plan to fully spin off the company by the end of the year. Wendy's spun off some of its stake in March through Tim Hortons' initial public offering.

Shares of Wendy's recently were up 3 cents to $66.60. Tim Hortons fell 24 cents to $26.11.