Bankruptcy

BLockbuster: Going Bust?

By mcbride

Many of us with kids of a certain age know the Friday night ritual: take the kids to Blockbuster to rent a movie.  That era may be going away as companies find that they no longer need expensive bricks and mortar stores to rent movies.  Next up for Blockbuster regardless of the long term prognosis is a chapter 11 filing in order to reduce its current debt load of 900 million dollars.  “The company is working with debtholders on a plan, under which it would continue operating but shutter hundreds more stores, said the source, who was not authorized to speak publicly about the situation. A bankruptcy filing is expected as early as Wednesday….Under the proposed plan, senior bondholders would convert about $630 million of debt into equity of the restructured company. The other bondholders would be wiped out….” 

Along with debt holders, landlords across the country will be hit hard as there are not many other tenants lined up to take these commercial spaces.  Here is a link: http://www.reuters.com/article/idUSTRE68L32K20100922

Michael

Full post as published by Texas Lawyer Blog on September 22, 2010 (boomark / email).