Blockbuster Looking for Debt Overhaul, Not Bankruptcy Filing

The biggest movie rental chain, Blockbuster, clarified today that it isn't seeking plans to file for bankruptcy as some news agencies reported, but rather it is enlisting lawyers to refinance its massive debt.

Company spokeswoman, Karen Raskopf, said:

"We do not intend to file for bankruptcy."

Instead, the law firm will assist "with our ongoing financial and capital raising initiatives," she stated, including restructuring a $328 million term loan and a revolving credit facility due in August.

...  Blockbuster, like other companies with debt issues, faces a "difficult credit market out there," she said. - Yahoo! Finance

Blockbuster is on Blue MauMau's watch list of franchisors that in our opinion are struggling with insolvency.