Blockbuster in bankruptcy financing talks-WSJ
NEW YORK, June 11
NEW YORK, June 11 (Reuters) - Blockbuster BBI.N is in talks with bondholders to get a $150 million debtor-in-possession loan, a sign the movie rental company could be closer to seeking Chapter 11 protection, the Wall Street Journal reported on Friday.
Dallas-based Blockbuster, which has been trying to restructure its more than $900 million in debt, is still pursuing other options, the WSJ said.
Some companies negotiate bankruptcy loans as a precaution, in case they are unable to reach agreements with their bond holders.
Blockbuster has been trying to avoid bankruptcy as it has lost customers to mail service Netflix Inc (NFLX.O) and DVD rental kiosk company Redbox, a unit of Coinstar Inc CSTR.O.
Separately, Blockbuster is also talking to some possible partners about a cash injection, the WSJ reported, citing a person familiar with the matter. Such a deal would likely involve some bondholders converting to equity investors, the unnamed source told the newspaper.
Blockbuster hopes to restructure outside of bankruptcy, the WSJ reported. Blockbuster would not file before its June 24 shareholder meeting, the source told the newspaper. (Reporting by Elinor Comlay, editing by Leslie Gevirtz)