A bankruptcy judge on Thursday gave Blockbuster Inc three more months to negotiate leases, giving it a new lifeline as the video rental chain tries to reorganize its business.

Judge Burton Lifland of the U.S. Bankruptcy Court in Manhattan also denied a request by a group of shareholders to examine Blockbuster documents.

Lifland's ruling followed a disclosure by Blockbuster earlier this week that it had won a three-week extension from its lenders to February 4 from January 14 to file a bankruptcy reorganization plan.

Blockbuster filed for Chapter 11 protection on September 23, hoping to wipe out much of its $1 billion of debt.

The case is In re: Blockbuster Inc, U.S. Bankruptcy Court, Southern District of New York, No. 10-14997.

(Reporting by Caroline Humer; Editing by Lisa Von Ahn)

Court Bankruptcy Law