Video rental chain Blockbuster Inc has asked bondholders for an additional $200 million to $250 million to help with its exit from bankruptcy protection, the Wall Street Journal said on Monday, citing people familiar with the matter.
The report said bondholders have not yet decided whether to provide Blockbuster with the extra funds or put the chain up for sale.
Blockbuster filed for bankruptcy in September with a plan to wipe out most of its roughly $1 billion in debt by turning over control to holders of its secured bonds.
Those bondholders, led by billionaire investor Carl Icahn, also provided the company funding to continue operating in bankruptcy.
But after a weak holiday season, the company determined it would need more money for its turnaround and could also close more stores, according to the report.
Citing the sources, the Journal said Blockbuster could be worth around $400 million or so in an auction, based on the value of its senior bonds, inventory and real estate.
Blockbuster was not immediately available for comment.
(Reporting by Michael Erman; Editing by Richard Chang)