By Emily Chasan
NEW YORK, July 9 (Reuters) - Struggling U.S. video chain Blockbuster Inc has hired turnaround expert Jeffery Stegenga as its chief restructuring officer to help the company with its financial restructuring.
Stegenga, a veteran of turnaround firms Alvarez & Marsal and FTI Consulting, will also help the company with long-term strategy and growth, a spokeswoman said on Friday.
The chief restructuring officer was hired at the request of the company's bondholders, the spokeswoman said.
Blockbuster is struggling to avoid bankruptcy as it loses customers to Netflix Inc and DVD rental kiosk company Redbox, a division of Coinstar Inc.
Earlier this month, Blockbuster said it had entered into a forbearance agreement with about 70 percent of its noteholders, and elected not to make a $42.4 million interest payment on the bonds, that was due July 1.
Stegenga, who has most recently been a managing director at Alvarez & Marsal, is expected to return to Alvarez & Marsal after finishing his work at the company, the spokeswoman said.
Blockbuster shares closed at 16 cents on the over-the-counter market on Friday.
(Reporting by Emily Chasan, editing by Bernard Orr) Keywords: BLOCKBUSTER/RESTRUCTURING (emily.chasan@thomsonreuters.com; +1 646 223 6114; Reuters Messaging: emily.chasan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
NEW YORK, July 9 (Reuters) - Struggling U.S. video chain Blockbuster Inc has hired turnaround expert Jeffery Stegenga as its chief restructuring officer to help the company with its financial restructuring.
Stegenga, a veteran of turnaround firms Alvarez & Marsal and FTI Consulting, will also help the company with long-term strategy and growth, a spokeswoman said on Friday.
The chief restructuring officer was hired at the request of the company's bondholders, the spokeswoman said.
Blockbuster is struggling to avoid bankruptcy as it loses customers to Netflix Inc and DVD rental kiosk company Redbox, a division of Coinstar Inc.
Earlier this month, Blockbuster said it had entered into a forbearance agreement with about 70 percent of its noteholders, and elected not to make a $42.4 million interest payment on the bonds, that was due July 1.
Stegenga, who has most recently been a managing director at Alvarez & Marsal, is expected to return to Alvarez & Marsal after finishing his work at the company, the spokeswoman said.
Blockbuster shares closed at 16 cents on the over-the-counter market on Friday.
(Reporting by Emily Chasan, editing by Bernard Orr) Keywords: BLOCKBUSTER/RESTRUCTURING (emily.chasan@thomsonreuters.com; +1 646 223 6114; Reuters Messaging: emily.chasan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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