graubart
VP, Product Strategy
Internet
10-20 years
BA, SUNY Albany
United States
New York
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PulseCheck: Blockbuster Staring Bankruptcy Filing in the Face March 16, 2010
Blockbuster (BBI) today said it may have to file for bankruptcy protection as it tries to restructure itself.
Business Insider has details of the company’s 10-K filing. A few excerpts:
- It is possible that a successful and efficient implementation of an exchange or any of the other strategies we are pursuing will require us to make a pre-packaged, pre-arranged or other type of filing for protection under Chapter 11 of the U.S. Bankruptcy Code.
- If we are unable to successfully implement our operational and business strategies, if we are unable to reach agreements with our debt holders to restructure a sufficient portion of our debt, or if the major studios tighten or eliminate credit terms, we may voluntarily seek relief under the U.S. Bankruptcy Code.
- We are currently experiencing significant liquidity constraints and have sizable amortization and other debt service requirements. Should we not be able to generate sufficient cash from operations and should the studios tighten or eliminate credit terms, we may determine that it is in the Company’s best interests to voluntarily seek relief through a pre-packaged, pre-arranged or other type of filing under Chapter 11 of the U.S. Bankruptcy Code, including prior to the time we would otherwise be required to do so in an acceleration event.
In related news, AP reports that Kiosk operator NCR Corp.(NCR) said Monday it would place Blockbuster Express-branded DVD rental kiosks at nearly all 365 Sheetz convenience stores in North Carolina, Ohio, Pennsylvania, Maryland, Virginia and West Virginia by the end of March.
Blockbuster has put its European arm up for sale, according to the Sunday Times of London.The paper said the indebted U.S. company wanted to sell its European division, which it values at about 50 million pounds, to raise cash.
See also Research Update: Analysts Divided on Video Rental Business
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