Blockbuster mum on talks with creditors
Written on August 7, 2010
Blockbuster is being mum about rumors that the company is working with creditors to get a reprieve on payment so it can prepare for bankruptcy in September.
Bloomberg News quoted unidentified sources who indicated that the Dallas-based movie rental giant is likely to receive a one-month reprieve. It was not disclosed whether it will be an out-of-court or Chapter 11 bankruptcy reorganization. Bloomberg also said sources had indicated that Blockbuster's lenders want a pre-packaged bankruptcy in exchange for a payment extension.
“We don’t comment on rumors nor can we discuss where we are in the recapitalization process," said Patty Sullivan, senior director of corporate communications for Blockbuster, when asked about the report Friday.
The company did verify that the selling of certain assets may be part of ongoing discussions, but was not specific.
Blockbuster is expected to release its second-quarter earnings on Thursday.
Filed in: marketing, technology.