A bankruptcy auction for movie rental chain Blockbuster Inc (BLOAQ.PK) kicked off with a $284 million bid from Dish Network Corp (DISH.O) on Tuesday, quickly topped by bids from rival groups led by billionaire Carl Icahn and hedge fund Monarch Alternative Capital The auction in U.S. Bankruptcy Court in Manhattan will decide the fate of the movie rental chain, which filed for bankruptcy last September. The company put itself up for sale in February after a reorganization plan fell apart. The Icahn group bid $291.4 million, while Cobalt Video, a group of hedge funds led by Monarch, offered $290 million, said Blockbuster lawyer Stephen Karotkin, who was leading the auction. The Cobalt bid includes more money for repaying certain noteholders, he said.
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