Blockbuster On The Block

Bankrupt video giant Blockbuster is putting itself up for the sale, having been unable to reach agreement on a recapitalization plan with creditors, the company announced.

Blockbuster filed a motion seeking authorization from a New York bankruptcy court to conduct an auction a statement says is “designed to achieve the highest and best offer for the Company’s assets.”

In conjunction with the plan, Blockbuster also entered into an asset purchase agreement with a “stalking horse” bidder, Cobalt Video Holdco LLC, worth some $290 million.

The holding company is made up of Blockbuster’s four largest creditors. The “stalking horse” bid sets the floor or minimum acceptable bid at auction.