Icahn, others make bids for Blockbuster


by Mae Anderson

AP Retail Writer

NEW YORK - Blockbuster Inc. mulled bids from Carl Icahn and others in an auction process that began Monday in New York that will decide the fate of the troubled video-rental chain.

Potential bidders, lenders and Blockbuster representatives met in several rooms at the U.S. Bankruptcy Court in the Southern District of New York on Monday. A sign on one room said it was reserved for Carl Icahn's Icahn Acquisition Corp. The billionaire investor did not return a call seeking comment.

The Wall Street Journal reported liquidation firms Gordon Brothers Group and Hilco Merchant Resources submitted a joint bid for some of Blockbuster's assets including its DVDs. Gordon Brothers could not be reached. Hilco declined to comment.

Icahn was part of the group of debtholders that provided Blockbuster financing to operate while in bankruptcy in September.

Everyone in that group except for Icahn made the opening bid, known as a "stalking horse" bid, in February to buy Blockbuster for $290 million. That group, called Cobalt Video Holdco LLC, includes investment funds managed by Monarch Alternative Capital LP, Owl Creek Asset Management LP, Stonehill Capital Management LLC and Varde Partners Inc.

Other reports have suggested that bidders may include The Dish Network and SK Telecom, according to unconfirmed reports.

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