Carl Icahn Can't Quit You, Blockbuster

Earlier this year it appeared Carl Icahn was all done with Blockbuster: The one-time major shareholder in the downtown-based video-rentalist, the guy who led the charge to oust CEO John Antioco and replace him with Jim Keyes, resigned from its board in January. Then, in March, he began dumping stock...

By Robert Wilonsky

September 17, 2010

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Earlier this year it appeared Carl Icahn was all done with Blockbuster: The one-time major shareholder in the downtown-based video-rentalist, the guy who led the charge to oust CEO John Antioco and replace him with Jim Keyes, resigned from its board in January. Then, in March, he began dumping stock. And that, it appeared, was that.

Not so much, reports The Wall Street Journal this morning. If Blockbuster's headed for prepackaged Chapter 11 any day now, Icahn will have plenty of say in the legal matter, baby:

Corporate raider Carl Icahn is telling people close to Blockbuster Inc. that he holds roughly a third of the beleaguered movie-rental chain's senior debt, enough for him to control the company's restructuring, said people familiar with the situation.

Mr. Icahn emerged as a force in Blockbuster's restructuring in recent weeks, these people said. Mr. Icahn is signaling he holds enough of Blockbuster's senior bonds to block any restructuring plan not to his liking, they added. Mr. Icahn recently bought about $100 million in debt from other hedge funds holding Blockbuster bonds.

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