Tuesday, March 03, 2009

Blockbuster Refinancing its Debt and is Not Bankrupt

It seems Blockbuster is just looking for a way to finance some debt coming due in August and not closing up shop as reported earlier. Look for a steep drop off in Netflix stocks tomorrow. Maybe Blockbuster should approach the Feds about a bailout?

The video rental chain has said that it has the cash to fund itself through 2009 if necessary, but is trying to secure refinancing to make a debt payment due in August. Shares of Blockbuster had dropped 77% on Tuesday after a published report said it had hired Kirkland & Ellis to help it consider a variety of restructuring options, including a possible bankruptcy filing.

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