Mired in $1 billion of debt, Blockbuster asked the U.S. Bankruptcy Court to let it auction itself off. After restructuring its plan to better suit creditors who were calling for liquidation, Blockbuster has been granted verbal approval by the court to go ahead and put itself on the market. The judge still has to put his decision in writing to make it official.

Reuters reports suitors include dueling hedge funds: Monarch Capital, which has put in a $290 million bid, and a group headed by financier Carl Icahn. The judge said Icahn is free to bid on the company despite having served on its board last year.

Blockbuster video chain headed for sale [Reuters via Deadline]

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