Blockbuster Bankruptcy: Is It Time to Give Up?By Jeanine Poggi
NEW YORK (TheStreet) -- Blockbuster(BLOAQ.PK) is seeking yet more money from creditors as it struggles in bankruptcy court. Now bondholders must decide whether or not to provide another cash infusion or to finally walk away from the company and put it up for sale.
The flailing movie-rental retailer is asking bondholders, led by billionaire investor Carl Icahn and hedge fund Monarch Alternative Capital, for another $200 million to $250 million to be used after it exits bankruptcy protection, according to the Wall Street Journal.
Blockbuster was also granted an additional three weeks from lenders to file a bankruptcy reorganization plan. It now has until Feb. 4 to file a plan that previously was due on Jan. 14.
The chain is also contemplating shuttering more stores, the Journal reported, citing sources familiar with the matter.
The company could close up to 1,000 locations. 
Separately, Blockbuster's shareholders are seeking to replace the company's board of directors before the reorganization plan is submitted. The group has signed a request that was submitted to court to elect a new board.
"Shareholders have serious doubts on the competence and credibility of James W. Keyes (CEO) and the board of directors,"
according to a court filing.
