Blockbuster Can Take Bankruptcy Loan, Pay Studios
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Blockbuster Inc., the world’s largest movie-rental company, won court permission to pay film studios’ claims and take an amended $125 million loan to fund operations in bankruptcy.
U.S. Bankruptcy Judge Burton Lifland in New York approved the loan today after it was changed to meet objections from creditors and landlords. New terms require Blockbuster to have a business plan approved by secured lenders on Nov. 30, the same day a description of the company’s reorganization terms is due.