Blockbuster has hired lawyers to advise on restructuring its US$350m of debt.
The US video rental chain has brought in restructuring firm Kirkland & Ellis to advise it on debt refinancing and capital raising after being hit by online competitors.
Blockbuster, the world’s biggest film-rental business, insisted that it will not file for bankruptcy protection after trading in its shares was stopped for 90 minutes yesterday afternoon in New York.
Blockbuster has a US$350m revolving credit facility due to be paid back in August. It wants to refinance that debt and a US$28m term loan.
A Blockbuster spokeswoman insisted that even without refinancing it had enough cash to carry on till the end of the year.
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