Blockbuster gift cards another Chapter 11 casualty

By McClatchy Tribune Newspapers
Posted April 4 at 10:39 a.m.

Heads up anyone with a Blockbuster gift card. Better use it right away.

As part of Blockbuster’s bankruptcy process, the movie rental company will not honor any of its gift cards after April 6, as technically the company will be sold to creditors.

The cards will become worthless.

Blockbuster plans to close 1,145 of its roughly 3,300 U.S. stores.

At present, there is a plan to sell Blockbuster’s assets for $290 million to a creditor, Cobalt Video Holdco LLC, a partnership formed by Monarch Alternative Capital LP, Owl Creek Asset Management LP, Stonehill Capital Management LLC and Verde Partners Inc.

But several bidders are set to duke it out for Blockbuster at the auction, and they reportedly include Dish Network Corp. and billionaire investor Carl Icahn.

The movie-rental chain has received bids other than the opening bid of $290 million from a group of debt-holders made in February.

Blockbuster filed for Chapter 11 bankruptcy protection in September.

The restructuring company involved has more information

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