NEW YORK — Blockbuster, its creditors and potential buyers reached an agreement Thursday on a sale process that may prevent liquidation of the movie rental chain. The deal ends demands from some creditors that the bankrupt movie-rental chain shut down and liquidate. A judge from the U.S. Bankruptcy Court for the Southern District in New York on Thursday was set to rule on whether Blockbuster Inc., operating under Chapter 11 protection, can start the process to sell itself in an auction that would start with a bid of $290 million bid from a group of debtholders.

Some creditors want the chain to sell itself. But others, including a U.S. Bankruptcy Trustee, said the Dallas company should shut down and liquidate.