Blockbuster's Stock Nosedives On News It Is Investigating Bankruptcy

Blockbuster’s stock just dropped 79% this afternoon after Bloomberg published a story that said the company hired the firm Kirkland & Ellis “to evaluate restructuring options, including a possible pre-packaged bankruptcy.” Blockbuster says they’ve only hired the firm for “refinancing and capital raising initiatives,” and that they do not intend to file for bankruptcy.

“Blockbuster Said to Hire Firm for Advice on Possible Bankruptcy” [Bloomberg]
“Blockbuster Shrs Plunge; Reportedly Mulls Bankruptcy” [Barron's]
Blockbuster on Google Finance [Google Finance via CoryOBrien]