Video chain Blockbuster may be preparing to file a pre-packaged bankruptcy, Home Media reports.  After being delisted by the NYSE, the company was able to secure a temporary forbearance agreement allowing it to miss a $42 million debt payment, but the agreement will have to be extended again this Thursday or it will be in default.


Blockbuster is also due to announce earnings Thursday. 


The company has been buffeted by Netflix, Redbox, and downloads, and despite the collapse of its largest brick and mortar competitor (see “Movie Gallery RIP”), it appears unable to stem its losses or get its kiosk or other new businesses  ramped up fast enough to continue as a going concern (see “Blockbuster Teetering”).