Blockbuster will know its new owner on Monday
April 1, 2011 02:23 PM
Blockbuster Inc. will know on Monday who its new owner will be.
In a new filing with the U.S. Bankruptcy Court for the Southern District of New York, the retailer says an auction for its assets, including Blockbuster.com and its digital streaming technology, will take place at 10 a.m. Eastern time in the courthouse.
In February Blockbuster, No. 34 in the Internet Retailer Top 500 Guide, accepted a stalking horse bid of $290 million from a consortium of current investors and note holders that includes Cobalt Video Holdco LLC, a limited liability company formed by funds managed by Monarch Alternative Capital LP, Owl Creek Asset Management LP, Stonehill Capital Management LLC and Värde Partners Inc.
A stalking horse bid is an initial bid on a bankrupt company's assets from an interested buyer chosen by the bankrupt company and sets the floor for minimum acceptable bids. Blockbuster has yet to name who any other bidders may be, but does acknowledge the company has received some other offers.
Blockbuster, which lists total assets of $1.01 billion and debts of $1.46 billion, filed for bankruptcy in September.