Blockbuster vies for greater control of bankruptcy
Blockbuster, America's largest U.S. video rental chain, filed for bankruptcy earlier this year and soon faces the expiration of its exclusive right to dictate terms of its recovery plan.
Blockbuster, America's largest U.S. video rental chain, filed for bankruptcy earlier this year and soon faces the expiration of its exclusive right to dictate terms of its recovery plan.
Company officials plan to lobby for an extension, which would grant Blockbuster exclusive filing rights through March. Without this protection, any of the company's creditors could file a bankruptcy motion.
In documents filed in Manhattan's bankruptcy court last week, the company said it needs more time to access how to keep its traditional storefronts open during the transition, Reuters reports. Blockbuster owns and operates nearly 3,000 locations across the country.
Blockbuster says it needs more time to renegotiate leases on the properties, as the complex work has taken longer than originally anticipated.
By cutting costs at these locations, the company hopes to wipe out some of its debt, the news source says. Another plan proposed by the company would transfer nearly $1 billion in debt to holders of Blockbuster's secured bonds.
Blockbuster and the video rental industry at large have seen profits decline in recent years, as they face increased competition from DVD-by-mail and kiosk services.
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