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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.