Blockbuster auction to continue into second day

New York City -- Blockbuster's bankruptcy auction is set to stretch into a second day on Tuesday after preliminary talks between bidders and the chain's representatives dragged on late into Monday, a company spokesman said.

Blockbuster did not say how many bidders it attracted, but halls outside the auction room in Manhattan bankruptcy court were packed with attorneys and investment bankers refining their bids throughout Monday, Reuters reported.

With talks wrapping up Monday evening, the bidding itself is set to take place on Tuesday and will be public, said Blockbuster spokesman Michael Freitag, according to Reuters.

Satellite television company Dish Network Corp. and billionaire investor Carl Icahn qualified for the auction by submitting bids last week, the Wall Street Journal reported on Friday, citing people familiar with the matter.

A Dish spokesman declined to comment. Icahn did not return calls seeking a comment, but a room at the courthouse was reserved for the Icahn group.

Gordon Brothers Group and Hilco Merchant Resources also submitted a joint bid for Blockbuster's inventory, the Journal said on Monday.

The auction will be followed by a hearing before federal bankruptcy judge Burton Lifland on April 7 to approve the new owner.