Walt Disney Co., Universal Studios, Yahoo! Inc. and others are objecting to Blockbuster’s proposed auction, saying that the sale benefits a group of lenders at the expense of other creditors, reports Bloomberg.
The objections were filed yesterday, creating a dispute over how the video-rental chain should end its bankruptcy, the story notes.
A U.S. bankruptcy judge is considering a motion to sell the company to a group including Monarch Alternative Capital LP, the article says.
Disney, which has a $9.2 million claim for merchandise shipped to Blockbuster after its September bankruptcy filing, said a sale may be the best way to maximize its assets, but that the current proposal is unfair, the story says.