Video rental chain Blockbuster Inc said it had received an additional three weeks from its lenders to file a bankruptcy reorganization plan.
The company received an extension to February 4 from January 14 to file a plan, a regulatory filing shows. It is common for debtors to seek such extensions, and U.S. bankruptcy courts routinely grant them.
Blockbuster disclosed the extension after the Wall Street Journal said the company had asked its bondholders for an additional $200 million to $250 million to help fund its exit from bankruptcy, citing people familiar with the matter.
The bondholders led by billionaire investor Carl Icahn and hedge fund Monarch Alternative Capital LP have not decided whether to provide the funds or put the Dallas-based company up for sale, the report said.
Blockbuster may also close as many as 1,000 of its more than 5,000 remaining stores following a weak holiday season, the report said.
The company filed for Chapter 11 protection on September 23, hoping to wipe out much of its $1 billion of debt. It agreed to turn over control to holders of its secured bonds.
The case is In re: Blockbuster Inc, U.S. Bankruptcy Court, Southern District of New York, No. 10-14997.
(Reporting by Jonathan Stempel; Editing by Lisa Von Ahn)