Blockbuster Given Extension to File Re-Organization

Published by: Kelly Curtis on 18th Jan 2011 | View all blogs by Kelly Curtis
Blockbuster Given Extension to File Re-Organization

The troubled movie rental service Blockbuster has received an extension on the time it has been given to file a restructuring plan with regulators.  The Dallas-based company is expected to come out of bankruptcy protection this year with new ownership including billionaire investor Carl Icahn.

Blockbuster filed for Chapter 11 bankruptcy protection in September and has been given until February 4th to file its reorganization plan, according to a regulatory filing with the SEC.  It is not the first time the filing date has been extended, either.

Blockbuster, who has also been charged with hiring a new chief executive to run its operations, hopes to utilize protection to reduce its overall debt from close to $1 billion down to about $100 million.  The company has also started talks with its bondholders to acquire an additional $200 to $250 million in funding for after it leaves bankruptcy.

Blockbuster, once the premier name in movie rentals in the US, has suffered mounting losses for years with the growing popularity of streaming video services like Netflix, cable providers' video on demand, and DVD rental kiosks.  The company has made a number of changes to try to keep up with the changes in consumer demand, but changes failed to make a dent and the company's debt has spiralled out of control.

Blockbuster has closed over 1,000 under-performing locations over the last few years, and announced in December plans to close another 182 stores over the next few months.

Comments

0 Comments

     
Please login or sign up to post on this network.
Click here to sign up now.

Latest DT's

  • View DT's
    Here's a great bio that Full in Bloom did for the band Possessedhttp://fullinbloommusic.com/biography-possessed.html View DT's
    3 years ago by Geno
  • View DT's
    Rated: PG-13 In Theaters: January 24th Director: Stuart Beattie Starring: Aaron Eckhart, Bill Nighy, Yvonne ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: January 10th Director: Renny Harlin Starring: Kellan Lutz, Gaia Weiss, Scott Adkins View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: R In Theaters: December 4th Director: Scott Cooper Starring: Christian Bale, Casey Affleck, Zoe Saldana, Sam ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: December 13th Director: Peter Jackson Starring: Ian McKellen, Martin Freeman, Richard ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: R In Theaters: January 3rd Director: Gregory Plotkin Starring: Andrew Jacobs, Jorge Diaz, Gabrielle Walsh View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: TBD In Theaters: February 7th Director: George Clooney Starring: George Clooney, Matt Damon, Bill Murray, Cate ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: PG-13 In Theaters: January 17th Director: Tim Story Starring: Ice Cube, Kevin Hart, John Leguizamo, Bruce ... View DT's
    3 years ago by dallaseste
  • View DT's
    Rated: R In Theaters: January 17th Directors: Matt Bettinelli-Olpin, Tyler Gillett Starring: Allison Miller, Zach ... View DT's
    3 years ago by dallaseste

Top Authors

Subscribe