December 28, 2010
The video rental chain Blockbuster Inc. recently asked a New York bankruptcy court for an extension on their Chapter 11 bankruptcy protection plan with hopes of having their new deadline for late March. The Phoenix Business Journal reported that the company is set to have their bankruptcy plan filed by mid-January, where about 180 Blockbuster stores are expected to close by April 2011.
We reported in an earlier blog post that the Dallas-based retailer announced their bankruptcy last September after carrying about $900 million of debt. The company is now looking to close hundreds of stores and focus more of their efforts on digital distribution. Before Blockbuster's Chapter 11 reorganization plan began, the company had about 120 stores in the state of Arizona.
Perhaps the more time that is needed in the Blockbuster case comes from shareholders and unsecured creditors questioning the company's reorganization plan. Greg Maggipinto, a representative for the Ad Hoc Committee that represents shareholders, says that more time could be desired so that holiday sales and digital business can be further evaluated.
"They don't want to put out a business plan that gets trumped easily because a lot of people are watching these proceedings pretty closely here," Greg Maggipinto said in the Phoenix Business Journal. "There are other companies out there that have a keen interest in what is happening to Blockbuster."
In the state of Arizona, there are many Phoenix bankruptcy attorneys that develop reorganization plans for companies that are filing for bankruptcy. More information about the process of filing for Chapter 11 bankruptcy can be found through our Related Resource pages.
The video rental chain Blockbuster Inc. recently asked a New York bankruptcy court for an extension on their Chapter 11 bankruptcy protection plan with hopes of having their new deadline for late March. The Phoenix Business Journal reported that the company is set to have their bankruptcy plan filed by mid-January, where about 180 Blockbuster stores are expected to close by April 2011.
We reported in an earlier blog post that the Dallas-based retailer announced their bankruptcy last September after carrying about $900 million of debt. The company is now looking to close hundreds of stores and focus more of their efforts on digital distribution. Before Blockbuster's Chapter 11 reorganization plan began, the company had about 120 stores in the state of Arizona.
Perhaps the more time that is needed in the Blockbuster case comes from shareholders and unsecured creditors questioning the company's reorganization plan. Greg Maggipinto, a representative for the Ad Hoc Committee that represents shareholders, says that more time could be desired so that holiday sales and digital business can be further evaluated.
"They don't want to put out a business plan that gets trumped easily because a lot of people are watching these proceedings pretty closely here," Greg Maggipinto said in the Phoenix Business Journal. "There are other companies out there that have a keen interest in what is happening to Blockbuster."
In the state of Arizona, there are many Phoenix bankruptcy attorneys that develop reorganization plans for companies that are filing for bankruptcy. More information about the process of filing for Chapter 11 bankruptcy can be found through our Related Resource pages.
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