Andre Yoskowitz
24 Feb 2011 1:51
Blockbuster has said this week that they have signed a $290 million deal that will sell the chain to a group of investors which will take it out of Chapter 11 bankruptcy.
The offer comes from Cobalt Video Holdco LLC, which consists of funds Monarch Alternative Capital LP, Owl Creek Asset Management LP, Stonehill Capital Management LLC and Varde Partners Inc.
Each of the funds hold secured Blockbuster debt.
While the deal needs approval from the federal judge overseeing the bankruptcy it is expected to receive the necessary approval soon. From there, other bidders have 30 days to place bids. If any other group does, the company would go up for auction.
CEO Jim Keyes added (via Y!):
An auction will allow for the consolidation of ownership of the company to those with a clear and focused vision for Blockbuster's future.