(DALLAS) -- Video rental company Blockbuster said Monday that it has initiated the process to auction the company in an effort to maximize value for its stakeholders. An initial bid of $290 million was established by four large creditors, according to The Hollywood Reporter.
Blockbuster decided to sell the company when creditors could not come to an agreement about a recapitalization plan for the company, which filed Chapter 11 bankruptcy last fall.
The companies which participated in the "stalking horse" or initial bid to set the minimum acceptable bid are Blockbuster debtors Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Managemen, Varde Partners and Colbalt Video Holdco (managed by Monarch Alternative Capital).
The initial bid did not include billionaire investor Carl Icahn, who also owns are large amount of Blockbuster's debt.
Blockbuster expects to close a sale no later than April 20.
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