"Blockbuster Inc., the bankrupt movie rental chain, agreed to be bought by a group of debt holders for as much as $290 million as part of a bankruptcy auction," Bloomberg reports.
The report continues, "The Dallas-based company said the bid from Monarch Alternative Capital LP, Owl Creek Asset Management LP, Stonehill Capital Management LLC and Värde Partners Inc. would set the minimum at an auction. The company will seek approval for the plan from U.S. Bankruptcy Judge Burton Lifland in Manhattan at a hearing scheduled for March 2."
The story adds that the troubled company "last reported a profit in the first quarter of 2009, [and] posted a net loss of $53.5 million on sales of $736.6 million in the third quarter of 2010. Cash and cash equivalents stood at $66 million as of Jan. 2, the company said in court papers.The bankruptcy petition listed assets of $1.02 billion against debt of $1.46 billion. The company said owes $57 million in accounts [payable]."