Blockbuster Can Pay Studios, Tap $45M In Financing

Law360, New York (September 27, 2010, 4:59 PM EDT) -- A federal judge has allowed Blockbuster Inc. to pay $40.4 million to movie studios in order to prevent it from running short on inventory, also giving the bankrupt movie rental company permission to tap up to $45 million in debtor financing.

Judge Burton R. Lifland approved the requests from Blockbuster during a hearing Monday in the U.S. Bankruptcy Court for the Southern District of New York, findings that items sought by the debtor are “essential to the survival of the business.”

Blockbuster’s lawyer, Martin A. Sosland...
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