Blockbuster Creditors Turn On WG&M, DIP Terms

Law360, New York (October 13, 2010, 3:23 PM EDT) -- Blockbuster Inc.’s prepackaged reorganization has ruffled the feathers of investors, landlords and tax authorities opposed both to Weil Gotshal & Manges LLP's role as the video rental company's counsel and to the organization's proposal for $125 million in financing.

On Tuesday, myriad stakeholders in the video store’s Chapter 11 case filed objections in the U.S. Bankruptcy Court for the Southern District of New York, taking issue with the debtor’s plan to secure post-petition financing and Weil Gotshal’s own claim to be a disinterested participant.

Specifically, senior...
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