Home > attorneys > Blockbuster Bankruptcy : The latest and the greatest

Blockbuster Bankruptcy : The latest and the greatest

Bankruptcy has been in the air when it comes to Blockbuster.  The company is seeking short-term financing from sources such as their senior bondholders in amounts up to $150 million.  This is according to insiders.  Jim Keyes, who is the Chief Executive, has openly said that Blockbuster is indeed seeking a short-term aid in financing to weather the times in case the organization cannot there more restructure their more than $900 million debt outside of court.

Keyes also stated their preferred option would be to obtain new money from key strategic investors.  In situations such as this, speed is key.  In the case that Blockbuster had to restructure in court, they would attempt to file a “prepackaged” or “prearranged” bankruptcy according to insiders.

“Our objective is to improve our balance sheet as quickly as possible,” Keyes said.

“This is not a time to sit on the sidelines for six months while the technology side of our business is dramatically changing daily. The balance we’re trying to achieve now is to have the fastest transaction, ideally out of court, that leverages new strategic investments.”

Who knows what is to come for Blockbusters’ future.  Come July 1, the company has more than $40 in debt payments due.  Blockbuster had about $110 million in cash and cash equivalents recorder on April 1.  Keys commented on the issue by saying-“The payment’s not due until July 1. We’re working on a number of different options and we’re in active discussions with our bondholders right now.”

Blockbuster still has advantages over their competitors such as Netflix and Coinstar such as a 28 day distribution lead.  Keyes also believes that they can sell their international businesses.  To which, he continued to say that the process ” will continue regardless of the path we take on the balance sheet.”

Keyes and company don’t foresee closing more stores than already planned.  Blockbuster still has advantages over their competitors such as Netflix and Coinstar such as a 28 day distribution lead.  Keyes also believes that they can sell their international businesses.  To which, he continued to say that the process ” will continue regardless of the path we take on the balance sheet.”

To find our more on the topic, read about  “Will blockbuster be filling for bankruptcy?

Advertisements
Categories: attorneys
  1. August 11, 2010 at 3:38 am

    That’s very unfortunate to see this happen. Hopefully they come out of it. Thank you for sharing this with us.

    -Jack

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: