It looks like Carl Icahn will get his chance to bid on Blockbuster after all. A U.S. Bankruptcy Court judge in New York has ruled that the video rental chain can go ahead with an auction after it restructured a deal to better satisfy some creditors who felt the original plan would have left them out in the cold. Other creditors wanted the company to declare Chapter 7 and liquidate, rather than be sold off and continue operating.
The judge also said he would allow Icahn — a hedge-fund titan who has been quiet of late in another high-profile fight, this one to gain control of Lionsgate — to participate in the auction, despite the fact he previously served on the company’s board. Monarch Capital, another hedge fund, already has submitted a $290 million bid for Blockbuster.
According to the New York Times, movie studios like Warner Bros., Fox and Paramount would get more money owed to them returned sooner under the new agreement, including a share of any sale price that exceeds Monarch’s current bid.