Blockbuster amends loan agreement

April 3, 2009 8:22:55 PM PDT
Blockbuster says it has amended a revolving and term loan agreement, which gives it some breathing room on its finances amid a deepening recession and increased competition.

The Dallas-based video rental company, which faces competition from Netflix Inc. and others, says lenders have also agreed to waive any default that comes from a "going concern" classification for fiscal 2008.

The struggling company had lined up tentative financing deals prior to the amendment, but earlier this month cautioned that its auditor was likely to raise doubts about its ability to stay in business.

The amended facility, agreed upon with JPMorgan and other lenders, gives Blockbuster a $250 million revolving loan refinancing that matures on Sept. 30, 2010.


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