Blockbuster seeking to cut $1 bil debt load

Hires a law firm, investment bank to explore options

NEW YORK -- Blockbuster has hired a law firm and an investment bank to explore strategic options to cut its $1 billion debt load along with potential acquisitions and partnerships, the Wall Street Journal reported Wednesday.

The news comes as bondholders have begun talking with the video rental giant about reworking its capital structure, such as converting debt to equity, the Journal said.

"We don't contemplate filing for bankruptcy," the newspaper quoted CEO Jim Keynes as saying.