Blockbuster In The Market For $150M DIP Loan

Law360, New York (June 14, 2010, 10:54 AM EDT) -- Blockbuster Inc. is reportedly seeking new loans, including up to $150 million in debtor-in-possession financing, to smooth out its finances and possibly prepare for a Chapter 11 filing.

The movie rental chain is consulting with its bondholders about the possibility of a DIP loan, the Wall Street Journal reported Saturday.

The senior bondholders, which hold about $630 million of the company's debt, would provide the financing to protect their investment if Blockbuster does in fact enter bankruptcy, the Journal reported.

In another potential bid to stay...
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