NEW YORK ( TheStreet) -- Billionaire investor Carl Icahn could be looking to make his own bid for bankrupt Blockbuster ( BLOAQ.PK). 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. >>Will Blockbuster Be Forced to Liquidate? 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.
Icahn's has had a long history with Blockbuster. In 2004, Icahn gobbled up shares of the company, intent on seeing a merger between now bankrupt Hollywood Video and Blockbuster -- a deal that never materialized. >>Click here to take our Blockbuster poll Then in May 2005, Icahn waged a successful proxy fight to add himself and two other members to Blockbuster's board of directors. Icahn accused Blockbuster of overpaying then-CEO John Antioco. The battle between the two eventually drove out Antioco. In January, Icahn stepped down from the board of directors, citing Institutional Shareholder Services guidelines regarding how many directorships he can hold. Prior to the bankruptcy filing in September, Icahn bought about a third of senior bonds, according to reports. --Written by Jeanine Poggi in New York. >To contact the writer of this article, click here: Jeanine Poggi. >To follow the writer on Twitter, go to http://twitter.com/jpoggi. >To submit a news tip, send an email to: firstname.lastname@example.org.