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[RULiquid]

BBI NEWS March 3, 2009, 4:21 pm
Blockbuster Says It Has No Plans To File For Bankruptcy
Posted by Eric Savitz
Blockbuster (BBI) this afternoon confirmed in an interview with Tech Trader Daily that the company has hired Kirkland and Ellis “for assistance with our ongoing financing and capital raising initiatives,” but added that “we do not intend to file for bankruptcy.”

Blockbuster spokeswoman Karen Raskopf said the company will provide an update on its refinancing efforts on its March 19 earnings call.

She noted that the company said on its third-quarter earnings call that the company has a $28 million term loan and a revolving credit line that come due in August 28. The company’s most recent balance sheet shows a total $209 million of long-term debt classified as short term.

Trading in Blockbuster shares is currently halted. Before the halt, the stock was down 75 cents, or 78.2%, after Bloomberg reported that the company had hired Kirkland and Ellis and was considering a pre-packaged bankruptcy.