Tyco's bondholders are worried that the scandal-afflicted conglomerate is seeking to avoid paying them back in full when the company completes its break-up later this year.

Tyco, whose name became a byword for corporate excess following the conviction of its former chief Dennis Kozlowski for looting the company, is planning to split into three parts. The bondholders are concerned because they have not been told what the debt plans are for the spin-off.