Blockbuster Announces Auction, $290M Creditor Bid

Law360, New York (February 22, 2011, 5:04 PM EST) -- Bankrupt Blockbuster Inc. on Monday announced a plan to sell itself at auction, armed with a purchase agreement from a stalking horse bidder promising at least $290 million for the video rental giant.

Blockbuster filed a motion for approval of the auction Monday in the U.S. Bankruptcy Court for the Southern District of New York, saying several creditors had formed a holding company called Cobalt Video Holdco LLC, which agreed to serve as the stalking horse bidder in the auction to set a minimum acceptable bid....
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