Blockbuster Is Said Likely to Get Reprieve on Debt
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Blockbuster Inc. will probably receive a one-month reprieve from creditors next week so the video-rental chain can prepare for a possible bankruptcy filing in September, three people with knowledge of the matter said.
Lenders are pushing for a pre-packaged bankruptcy in exchange for the 30-day extension on debt repayment, said the people, who declined to be identified because the negotiations are private. Blockbuster is reaching out to companies about buying assets in or out of bankruptcy, one of the people said.