Blockbuster Eyes Auction As Creditors Balk

Law360, New York (February 10, 2011, 6:06 PM EST) -- Bankrupt video store chain Blockbuster Inc. is reportedly considering auctioning itself off after creditors declined to give the company more money to exit court protection.

The chain could ask a judge in the U.S. Bankruptcy Court for the Southern District of New York to approve bidding procedures as early as next week and plans on seeking potential buyers, The Wall Street Journal reported Thursday, citing “people familiar with the matter.”

Blockbuster and its counsel could not immediately be reached for comment.

The Journal reported that billionaire...
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