Blockbuster shareholder expresses confidence in company

New York City A Blockbuster shareholder expressed confidence that the company will not need to file for Chapter 11 bankruptcy protection, in a filing with the Securities and Exchange Commission on Monday.

Mark Wattles owns a 5.7% stake of the Dallas-based company's Class A common stock through Wattles Capital Management.

Earlier this month, Blockbuster said it has hired corporate restructuring specialists Kirkland & Ellis to re-negotiate the terms of its outstanding loans and negotiate financing to support the 7,500-store chain.

In the SEC filing, Wattles said he does not believe the company has a reason to file for Chapter 11, citing "aggressive and proactive" steps the company has taken to close stores and reduce store sizes and subleases.

He predicted that the company will successfully refinance its revolving bank line of credit, or use cash flow from operations, to meet its August debt obligations and liquidity needs this year.

Wattles noted that he does not possess any confidential information about the company, although he has had discussions with members of the company's leadership.