Blockbuster Officially Up For Sale and Not Liquidation
posted Sunday Mar 13, 2011 by Jon Wurm
Here is some quick follow up news on the fate of Blockbuster which was attempting to gain federal court approval to be auctioned off instead of liquidated. Judge Burton R. Lifland with the Manhattan U.S. Bankruptcy Court signed off on an auction that will have a starting bid of $290 million by Monarch Alternative Capital for all the company's assets.
This only came after very intense negotiations between Blockbuster's lawyers and movie studio lawyers who felt a liquidation of the company would be the only way they could recoup the millions of dollars Blockbuster currently owes them. Dennis McGill, Blockbuster's financial chief, is happy about the auction approval and is hoping for an overbid which would aide in the paying off creditors more quickly than the agreed upon terms that Judge Lifland spent all day getting both sides to agree on.
There are currently six parties interested in purchasing Blockbuster and the interest helped persuade debtors and creditors that Chapter 7 isn't the only option for them to recuperate their losses. We can expect the final sale to be completed by April 20th this year.