Blockbuster Sidesteps Ch. 7 With Last-Minute Deal

Law360, New York (March 10, 2011, 8:04 PM EST) -- After a bout of last-ditch negotiations in New York, Blockbuster Inc. hammered out a deal Thursday with creditors over the $290 million sale of the bankrupt movie rental chain, defusing the threat of a Chapter 7 liquidation.

Judge Burton R. Lifland approved the auction procedures in the U.S. Bankruptcy Court for the Southern District of New York after pushing the hearing back several hours to accommodate last-minute debate between the stakeholders.

Kelley Drye & Warren LLP’s Robert L. LeHane, counsel for numerous landlords, said that extraordinary...
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