NEW YORK, June 11 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
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)