Blockbuster meets with bank lenders over covenant easing, plans to raise more capital

New York, Oct. 26 - Blockbuster Inc. said it met with its bank lenders to discuss changes to its credit facility to give it "improved operating flexibility."

As part of the modifications, the company will try to raise additional capital that it will use for working capital, including debt reduction. Any securities offered will not be registered with the Securities and Exchange Commission for sale to the public.

The Dallas-based video rental store operator said the meeting was in the context of efforts over the last several months to deliver a plan "that better positions [the company] strategically and financially."

Earlier in the month, Blockbuster said that it will be in compliance with the loan covenants for the third quarter.

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