Blockbuster Inc. (BBI) said Thursday it reached agreements with JPMorgan Chase & Co. (JPM) and two of its largest lenders to amend and extend its revolving credit facility, easing concerns the video-rental chain is headed for a liquidity crunch.

Shares initially rose in after-hours trading but recently slipped back and were down 6.7% at 83 cents. Fourth-quarter earnings excluding items trumped analysts' expectations, but Blockbuster's 2009 earnings guidance was slightly below analyst estimates.

In addition, Blockbuster said it was unable to complete negotiations in time for the planned filing Friday of its annual 10-K form to the Securities and Exchange Commission. As a result, it will delay the filing until April 6 and believes auditors could raise doubts about the company's ability to continue as a going concern at that time.

The commitments from lenders representing 65% of expected $250 million principal amount would extend the revolver through Sept. 30, 2010, but reduce the principal available from $350 million. Chairman Jim Keyes said $250 million would be adequate to meet Blockbuster's needs. "We're mostly concerned about the cost of capital," he said, adding that most companies refinancing in the current credit market are paying "irrational" costs.

The Dallas company has been scrambling in a tough credit climate to restructure debt coming due in August, and earlier this month it hired a law firm to explore restructuring options, but said it doesn't intend to file for bankruptcy. Shares are down two-thirds in the past six months.

"The financing seems to be moving in the right direction, and it seems to me they're on track to meet all the necessary requirements," said Sterne, Agee & Leach analyst Arvind Bhatia.

Executives on Thursday outlined a more conservative approach to capital-intensive initiatives and said they plan to cut costs by $200 million, mostly through lease expense reductions, cuts in compensation and increased used of outsourcing. The cost cuts would represent about 10% of Blockbuster's current selling, general and administrative expenses.

Keyes said executives have been meeting with movie studios and other suppliers to keep them posted on Blockbuster's liquidity and its refinancing progress.

Blockbuster swung to a fourth-quarter net loss on a $435 million non-cash charge to write down goodwill. The Dallas company reported a net loss of $359.8 million, or $1.89 a share, compared with year-earlier net income of $41 million, or 18 cents a share. Excluding items such as the write-down, which Blockbuster warned about earlier this month, earnings rose to 40 cents a share from 26 cents a share.

Revenue dropped 12% to $1.38 billion on the stronger dollar and weaker results from the company's by-mail rental service.

Analysts polled by Thomson Reuters expected per-share earnings of 25 cents on revenue of $1.52 billion.

Gross margin fell to 49.3% from 50.9% on the revenue drop.

Earlier this month, the company reported U.S. same-store sales rose 4%, driven by increased sales of games, game merchandise and consumer electronics. U.S. same-store sales grew in all four quarters of the year, a good sign for the company after five years of declines.

For the full year, U.S. same-store sales rose 6.4%, representing the first annual increase in eight years. Rental revenues rose 1.2% on a same-store basis, while retail revenues jumped 37.4%. Blockbuster's goodwill charge led to a full-year net loss of $374.1 million but adjusted earnings before interest, taxes, depreciation and amortization topped company guidance and came in at $319.1 million.

Looking ahead, the company expects adjusted earnings before interest, taxes, depreciation and amortization of $305 million to $325 million, compared with Wall Street's view of $336.8 million.

Blockbuster has been looking for ways to diversify its business, mulling a $1 billion-plus bid for Circuit City Stores Inc. (CCTYQ), which it ultimately dropped last summer. Circuit City has since gone out of business.

Additionally, Blockbuster is facing stiff competition from online rival Netflix Inc. (NFLX), pioneer of DVD rentals by mail, as well as Internet sites that let consumers stream movies and television shows, often for free.

(John Kell contributed to this report)

-By Mary Ellen Lloyd, Dow Jones Newswires; 704-948-9145; maryellen.lloyd@dowjones.com