Blockbuster Again Extends Filing Deadlines13 Dec, 2010 By: Erik Gruenwedel
Blockbuster Inc. has extended into early next year several deadlines required by the bankruptcy court for the rental icon to emerge from Chapter 11.
Dallas-based Blockbuster extended until Jan. 14 the deadline to file a plan of reorganization, according to a Dec. 10 court filing. It originally pushed back the date from Nov. 30 until Dec. 15. It also extended until Jan. 15 the deadline to file a business plan.
Blockbuster, which filed for bankruptcy Sept. 23, extended from Dec. 31 to Jan. 14, the deadline to find and receive approval of a new CEO by a “supermajority” of creditors.
Finally, Blockbuster extended until Feb. 11 the deadline to receive court confirmation of the aforementioned plans.
Edward Woo, retail analyst with Wedbush Securities in Los Angeles, said it is common to have delays in bankruptcy as competing interests among creditors position themselves to get the best deals. He said the short-term effect on Blockbuster is the increased time and money spent on the bankruptcy process. Indeed, Blockbuster said it spent $12 million in reorganization related costs in October, the most recent disclosed period.
“I would only be concerned if this dragged out much longer than six months,” Woo said.