Blockbuster Seeks Third Extension23 Dec, 2010 By: Chris Tribbey
Blockbuster is asking for a third extension to file a plan for reorganization, this time to March 11, according to bankruptcy court filings.
The Dallas-based company, which filed for Chapter 11 bankruptcy in late September, Dec. 10 extended the deadline to file a reorganization plan until Jan. 14, and set Jan. 15 as the deadline for a new business plan. In the newest court filing, the company said it needs more time to reach a compromise on a new business plan.
“At the current time, in view of, among other things, the dynamics of the market, the importance of the Christmas season results to the finalization of the business plan and to the decision-making process with respect to store closings, a consensus has not yet been achieved with respect to the debtors’ business plan and the optimum strategic plan and footprint for the reorganized enterprise,” the filing reads. “As a result, despite the current milestones, which have been extended since the commencement date, it is still premature to file a plan and accordingly, the debtors require an extension of their exclusive periods to file a chapter 11 plan.”
Blockbuster also asked the court to give it more time, due to the size of the company and the complexity of issues in reorganization, including the number of store leases the company is dealing with.
Earlier in the week, Blockbuster announced it would close 72 more stores before the end of the year and an additional 110 stores during the first couple months of 2011.