Blockbuster is preparing to file for Chapter 11 bankruptcy within the next few days, a source familiar with the video rental chain's plans told Reuters on Wednesday.
TheWrap confirmed last month that the troubled video retailer told the major studios it was planning to file for bankruptcy in mid-September.
Blockbuster CEO Jim Keyes held a series of meetings in Los Angeles with executives at Paramount, Warner Brothers, Sony, Universal and 20th Century Fox, individuals familiar with the talks told TheWrap last month. Keyes discussed how the company planned to restructure during a possible Chapter 11.
According to Reuters, under the proposed plan, senior bondholders would convert about $630 million of debt into equity of the restructured company.
"Our discussions with the studios and bondholders continue to be productive, and we have every reason to believe we will come out of the recapitalization process financially stronger and more competitively positioned for the future," Blockbuster said in an emailed statement to Reuters on Wednesday.