Blockbuster received an initial "stalking horse" bid in February from Cobalt Video Holdco, a limited liability company formed by funds managed by Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Management and Värde Partners.
Disney said in a filing that the bid favors the secured lenders over Blockbuster's other creditors. Disney has a $9.2 million claim for merchandise shipping to the bankrupt movie chain. Disney objects "to the secured lender apparently having dictated sale terms beneficial to itself and detrimental to the debtors' estates and its administrative trade creditors."
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