Entertainment company Blockbuster’s lenders came to the rescue and have helped to keep Blockbuster viable again by amending its revolving and term-loan credit facilities. Blockbuster fell upon some concerning times when it hired Kirkland & Ellis as a consultant to assist with capital-raising initiatives. News of the hire of a facility that also specializes in bankruptcy consulting send rumors rippling through the media that Blockbuster was considering bankruptcy. Those rumors were proven to be unfounded.

“We would like to express our appreciation to Monarch and Silver Point and our other lenders,” Blockbuster Chairman and CEO Jim Keyes said. “We believe the tremendous support received from our lenders serves as an endorsement of Blockbuster and the company’s transformation into a multichannel provider of media entertainment.”

The decision is a boon for Blockbuster, which says “lenders have agreed to waive any default arising from a ‘going concern’ qualification for the fiscal year 2008.”