Blockbuster now plans to seek buyers instead of reorganizing in bankruptcy court and could ask a judge to approve bidding procedures for the company as soon as next week, the people said. Creditors including billionaire investor Carl Icahn and a consortium led by hedge fund Monarch Alternative Capital LP are leading contenders to buy the chain out of bankruptcy court, the people said.
In related news, Home Media Magazine reports that Blockbuster is being sued by Summit over payment for DVDs including Twilight Eclipse. The court filings expose some prices Blockbuster pays for movies:
Specifically, Summit last November shipped Blockbuster 426,180 DVDs (excluding widescreen) of Eclipse for unit prices ranging from $6 to $20.20 each, in addition to 92,290 copies of the film on Blu-ray Disc (excluding widescreen) for unit prices from $6 to $23.99 each.
Summit, which claims Eclipse was the fourth-biggest home video release of 2010, contends Blockbuster has generated $8.3 million in rental revenue from the shipments.
The studio also has outstanding invoices for 1,710 copies of The Hurt Locker on Blu-ray for $23.99 each, and 1,620 copies of Robin Hood Unrated Blu-ray/DVD combo for $24.99 each.
Separately, Summit last month shipped Blockbuster 294,990 DVD copies (including special editions) of Red at prices of from $6 to $18 each, and 66,480 Blu-ray copies of Red at prices of from $6 to $23.99 each.
Thanks to John & Bast for sending this in.