September 3, 2009 (FinancialWire) — Blockbuster Inc. (NYSE: BBI) said it has reduced the face amount of certain letters of credit it maintains on behalf of its former parent company, Viacom Inc., from $75 million to around $25 million.

The company said that the move, which was designed to improve its liquidity, parallels a reduction in Viacom’s exposure to Blockbuster lease obligations.

The reduction of the letters of credit follows Blockbuster’s sale of its 186-store Xtra-Vision chain in Ireland for cash proceeds of up to $45 million.

Dallas-based Blockbuster is a global provider of in-home movies and game entertainment. The company operates more than 7,100 stores throughout the Americas, Europe, Asia and Australia. Blockbuster was spun off from Viacom in 1999.

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