Blockbuster is trying to stave off bankruptcy, as the movie rental company faces a debt load of $930 million.
Today I spoke exclusively with CEO Jim Keyes on his plans to keep the company afloat.
The big news: the company does plan to make its $42 million debt payment on July 1.
Keyes noted that the company has made all of its debt payments in the past and intends to make all moving forward.
But Keyes acknowledges that bankruptcy is a real option — it's one that the company would like to avoid — but it's preparing for that contingency. Keyes says that the key thing is making sure that the company doesn't have to sit on the "sidelines for any period of time."
With Netflix and Redbox posing increasingly steep competition, Keyes is saying that the company can't afford to halt its operations. That means if Blockbuster does file for Chapter 11 it'll have to secure over $100 million in loans to maintain operations. Keyes didn't go into the details but indicated he's well on his way to making those deals with "strategic partners" and its lenders.