Billionaire Carl Icahn suffered another setback today in his hostile takeover attempt of Lionsgate. The Court of Appeal for British Columbia upheld a lower court ruling that Lionsgate had acted appropriately last year when it allowed a lender to swap his debt for equity. Icahn charged that the move was designed to keep Lionsgate management entrenched by diluting his stake in the film and TV production company. But the Canadian courts agreed with Lionsgate that the transaction was prudent. The company did not have to “forego the opportunity to reduce Lionsgate’s debt by some $100 million in order to preserve the status quo for Icahn’s benefit,” the Court of Appeal said. Earlier, the New York Supreme Court rejected a similar charge by Icahn that Lionsgate’s debt-for-equity swap violated the company’s fiduciary responsibilities to its shareholders.