The strategy sees bondholders exchanging close to $1 billion in debt for equity in a reorganized Blockbuster, according to the U.S. Bankruptcy Court filing in the Southern District of New York. Blockbuster's U.S. operations, including its 3,000 stores, as well as DVD vending kiosks, by-mail and digital businesses remain open. The company has secured a commitment of $125 million in new "debtor-in-possession" financing from the senior noteholders to meet its obligations during the recapitalization process.
"After a careful and thorough analysis, we determined that the process announced today provides the optimal path for recapitalizing our balance sheet and positioning Blockbuster for the future as we continue to transform our business model to meet the evolving preferences of our customers," says Jim Keyes,
The company's non-U.S. operations and domestic and international franchises, which are separate entities, were not included in the filings.
Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes, it’s completely free.