Blockbuster Delays Filing Reorganization Plan30 Nov, 2010 By: Erik Gruenwedel
Blockbuster Inc. has extended the deadline to formally submit a plan of reorganization with the bankruptcy court until Dec. 15, according to a regulatory filing.
Dallas-based Blockbuster, which filed for Chapter 11 protection Sept. 23, was to have submitted a plan by Nov. 30 in accordance with provisions of its debtor-in-possession credit agreement.
The extention with senior lenders, many of whom will a receive a lion’s share stake in the new Blockbuster, mandated an amendment to the original accord.
Blockbuster also amended a so-called “plan support agreement” with senior lenders that calls for a business plan to be filed within 60 days of Dec. 15 (from Nov. 30), and that a “supermajority” of lenders approve the plan by Dec. 10.