Dallas-based Blockbuster has denied reports that it is seeking outside counsel in possible preparation for bankruptcy. In an interview with the Dallas Observer (and later with other publications) , Blockbuster spokesman Karen Ruskopf said that the company "does not intend to file for bankruptcy" and that it has hired the law firm Kirkland and Ellis only "for assistance with ongoing financing and capital-raising initiatives." Blockbuster has been staggering under a ton of loans that it was forced to bring with it after it was spun off from Viacom in 2004. On Tuesday, Blockbuster shares plummeted 77 percent to 22 cents from 74 cents. By midday trading today (Wednesday), it had risen 22 cents -- a 100-percent change. At the same time Netflix rose 5.8 percent Tuesday on news of Blockbuster's continuing woes and was up an additional 1.07 percent at midday today to $36.75.

04/03/2009