Blockbuster Inc. (PINK:BLOAQ) is an American chain of rental stores that offers movies, video games, and other forms media entertainment on a subscription basis. On September 23, 2010 Blockbuster declared bankruptcy, entering a recapitalization plan through which it hopes to reduce its debt from $1 billion to $100 million via a debt-for-equity exchange^[1]. The company will continue to operate in the ordinary course of business but "debtors in possession"^[2]. Blockbuster recorded revenues of $4.1 billion and net loss of $569 million in fiscal year 2009. In March 2011, the U.S. Bankruptcy Court in New York authorized Blockbuster to conduct an auction process for the Company. Blockbuster has entered into an asset purchase agreement with a "stalking horse" bidder, Cobalt Video Holdco, LLC, a limited liability company formed by funds managed by Monarch Alternative Capital LP, Owl Creek Asset Management LP, Stonehill Capital Management LLC and Värde Partners, Inc., each of which is a secured noteholder of the Company. ^[3] In April 2011, Dish Network won a bid to buy Blockbuster for $320.6 million.

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