Will Icahn Bid on Blockbuster?
Icahn, who owns the company's senior debt, said in a court filing that he is not part of the consortium that made the "stalking horse" offer of $290 million. The bid was made in February by Cobalt Video, a limited liability company formed by funds managed by Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Management and Värde Partners.
Last week, a judge opposed the bid, calling it too "aggressive." In total, 45 creditors objected to the deal, saying it allows senior lenders to have the sole right to convert the case to a Chapter 7 liquidation, repays their debt without requiring them to repay similar priority creditors, and gives them rights to lawsuit proceeds."If anything is going to fly, this garbage truck better sprout wings," Judge Burton Lifland said in Manhattan court. The court hearing regarding the bid is expected to resume on Thursday. >>Blockbuster Timeline: From Opening to Closing Credits If Icahn decides to bid (though he did stop short of saying his plans either way), it is up to the judge to determine his good faith and up to Blockbuster to decide if his offer is the highest and best, Icahn said in the filing. This comes after one junior creditor said Icahn shouldn't be allowed to bid in the auction.
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