Court OKs Chief Restructuring Officer for Blockbuster

27 Oct, 2010 By: Erik Gruenwedel

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The court handling the bankruptcy for Blockbuster Inc. has approved the appointment of a chief restructuring officer (CRO) and related personnel to assist the Dallas-based disc rental giant through its fiscal reorganization.

Judge Burton Lifland, with U.S. Bankruptcy Court in New York, Oct. 27 authorized the retention of Alvarez & Marsal North America, who named Jeffrey Stegenga to the position of CRO, among other personnel.

Alvarez & Marsal, Stegenga and related personnel are to report to Blockbuster’s board of directors, according to the court filing.

The court also approved $125 million in debtor-in-possession funding allowing Blockbuster to maintain operations and pay studio pre-petition claims, among other expenses.

Blockbuster, which in September filed a pre-packaged bankruptcy listing more than $1.4 billion in liabilities, last week retained an executive search firm to find a new CEO.

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