Blockbuster Given Extension to File Re-Organization
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.
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.
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