Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Blockbuster Files For Chapter 11, Complete Affidavit Enclosed

Blockbuster Files For Chapter 11, Complete Affidavit Enclosed

Courtesy of Tyler Durden

LOS ANGELES, CA - AUGUST 27: People walk past a Blockbuster store on August 27, 2010 in Los Angeles, California. News reports say that the video store chain is preparing to file for bankruptcy. The floundering retailer, which has lost ground to Netflix and Redbox, is due to repay $42 million of its $1 billion in debt on September 30. (Photo by Kevork Djansezian/Getty Images)

The biggest melting ice cube (since Movie Gallery) has just melted: Blockbuster finally accepted the inevitable and filed for Chapter 11 in New York Southern (Case 10-14997, legal: Weil Gotshal, CRO: Alvarez & Marsal). As part of the "pre-arranged" (but not "pre-negotiated") bankruptcy process, "the recapitalization plan would substantially reduce the Company’s indebtedness — from nearly $1 billion currently to an estimated $100 million or less when implemented." The Company has secured a commitment of $125 million in new "debtor-in-possession" (DIP) financing from the Senior Noteholders, chief among who is Carl Icahn, who has built up a major stake in the company’s $675 million Sr. Secured notes, which will be converted into post-reorg equity.

As the attached affidavit demonstrates, the company had 3,306 total video stores in the US (including franchises), and 2,333 international ones. We are confident that the company’s renegotiation of lease payments much lower will only force REITs to surge to all time astronomical highs, because after all, who needs cash flow?

The Org Chart of debtor entities that are actually going bankrupt as part of this Chapter 11 filing are shown on the org chart below. It appears all foreign operations will be bankruptcy-remote. We hope the bondholders managed to sequester their cash in time or oops.

And for those curious as to what Netflix’ pre-bankruptcy history will one day look like, we suggest you start reading point 38 (page 15 of 167 in the affidavit below): KEY EVENTS LEADING TO THE CHAPTER 11 CASES AND RESTRUCTURING GOALS

 


Tags: , ,

Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!