Blockbuster Files Prepack Ch. 11 To Reduce $1B Debt

Law360, New York (September 23, 2010, 11:33 AM EDT) -- Blockbuster Inc., long struggling to meet the needs of customers moving away from in-store movie rentals, filed for bankruptcy Thursday with a prearranged plan to slice more than $1 billion in debt to $100 million.

The rental giant filed its long-anticipated Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of New York, listing $1.02 billion in assets and $1.46 billion in liabilities.

Blockbuster filed the petition after reaching an agreement with a group of bondholders holding about 80.1 percent principal amount of...
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