Blockbuster: No Plans to File for Bankruptcy

Blockbuster (BBI Quote), the world's largest movie-rental chain, said it has hired a law firm to explore options to refinance its debt, not to prepare a filing for bankruptcy protection, refuting reports that it could be considering Chapter 11.

Dallas-based Blockbuster issued a press release late Tuesday stating that it has hired the law firm of Kirkland & Ellis LLP to advise it "with respect to its ongoing financing and capital raising initiatives." The company said it will discuss the status of its efforts to refinance the portions of its senior credit facility, which are scheduled to mature on Aug. 20, when it next reports earnings on March 19.

"We do not intend to file for bankruptcy," Blockbuster spokeswoman Karen Raskopf told TheStreet.com. "I can confirm that we've hired Kirkland & Ellis for assistance with our ongoing capital raising initiatives. We have been looking to put another bank facility in place this year and we've hired them for that effort." ...