Blockbuster Eyeing Mid-Sept. Bankruptcy

Law360, New York (August 27, 2010, 11:22 AM EDT) -- Video rental giant Blockbuster Inc. is reportedly gearing up to file for Chapter 11 bankruptcy protection in mid-September, despite an extension from debt holders in August that gave it time to rework its capital structure.

Senior debt holders and Blockbuster executives met separately last week with six major movie studios to lay out the company's plan to file a “pre-planned” bankruptcy, the Los Angeles Times reported Thursday, citing unnamed sources who had knowledge of the situation.

Blockbuster would need the support of film studios in the...
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