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Blockbuster Files For Chapter 11, Complete Affidavit Enclosed
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 $675 million Sr. Secured notes, which will be converted into post-reorg equity. As the attached affidavit demonstrates, the company had 3,306 total video stores in the US (including franchises), and 2,333 international ones. We are confident that the company's renegotiation of lease payments much lower will only force REITs to surge to all time astronomical highs, because after all, who needs cash flow?
The Org Chart of debtor entities that are actually going bankrupt as part of this Chapter 11 filing are shown on the org chart below. It appears all foreign operations will be bankruptcy-remote. We hope the bondholders managed to sequester their cash in time or oops.
And for those curious as to what Netflix' pre-bankruptcy history will one day look like, we suggest you start reading point 38 (page 15 of 167 in the affidavit below): KEY EVENTS LEADING TO THE CHAPTER 11 CASES AND RESTRUCTURING GOALS
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Icahn has video storz?
I can't even remember the last good movie I saw. I think it was Terminator II, or Ben Hur.
FINALLY!!!
Blockbusted bitchez!
Tyler is right we will be seeing more of these in rapid succession
What in the hell does Icahn see in Blockbuster? But, I'm just an ignorant consumer.
WTF? They don't get a bailout?
They should at least launch a CASH FOR VHS TAPES PROGRAMM!!!
funds all dried up by cash for BETA
Dude, Cash-For-LaserDisc totally beat that to the punch. Sorry!
Surely it's buried deep in some bill, somewhere? We can't have all those high paid jobs falling by the wayside now, can we? Uncle stosh would probably make money if he sold it back at 100$/share? Fck GM
Madhedgefundtrader recommendation: Buy
Bullish.
i try to refrain from doing this but,
NETFLIX bitches!
Interesting that they mention Apple and Amazon, but not Netflix.
Mutliplayer Bitchez!
Wow, who is surprised by this? People still pay $5+/night to rent a movie?!? I counter your Netflix with Redbox bitches!!!
For my $11 a month, I get the BluRay discs by mail (depending on how fast I can watch them and return them, it averages about 2 per week for an average of 9 per month) plus unlimited streaming (not recent releases but also includes TeeVee series) on my PS3.
So, I counter your counter with Netflix with BluRay and streaming!!!
You play MW2?
What's your PSN name?
I think it was Mort Zukerman who first pointed out that when you go into or compete with the internet, old media is trading dollars for nickels. All of the old paradigm stuff is dead, so buy,buy,buy!
Icahn sees store leases that can be converted to gun shops and survivalist stores
BLOCKBUSTED
http://williambanzai7.blogspot.com/2010/09/blockbusted.html
The older I grow, the more I distrust the familiar doctrine that age brings wisdom.
H.L. MENCKEN, Prejudices: Third Series
buy the dip? :)
Netflix bitchez
Slightly OT, but can someone explain to me why PETM has massively outperformed WOOF over the last 3 months ? I would think in a recession you'd stop spending money on pet clothes before you stopped spending money on vet bills, but what do I know ?
You probably know quite a lot, but you don't understand the kind of blue haired fat lady who owns/parades poodles.
It's especially fun to see in Florida, because alligators think the damn things are hors dourves.
I'd pay good fiat to see a YouTube clip of that...
I love how they blame "technological advances" for their downfall, how anti-Darwinian! Screw these knobs, adapt or die bitchez! I will shed no tears. And they threw in "general economic conditions" for good measure. They had their day at the top of the mountain, welcome to the end of the lifecycle:
IPO--> Small Growth --> Large Growth --> Large Value --> Small Value -->Bankruptcy!
Boy its a good thing the FTC disallowed a merger with Family Video five years ago! Can you imagine the pricing power those two uber-powerful franchises would have today!!!??!
Yeah, kinda like the monopolistic power enjoyed by SiriusXM.... oh, wait.
Here's a "coulda, shoulda, woulda" for you -
During my junior college years (five), I was detailing cars for extra money. We took care of some cars for a guy who was involved in the Blockbuster IPO. One day, the guy comes down to get his keys and pulls a Dali Lama on me - "oh, there will be no tip" - instead, the guy asks me how much money I have in the bank. The guy tells me that a stock, Blockbuster, is coming to market at about 5 cents (?) a share and to dump my life savings in to this thing.
Well, I'm thinking about the guy who I was renting videos from at the time, and can't really make the connection. I don't see the big picture, of course. So how many shares would i have owned if I had plowed my life savings (5K) into Blockbuster when it opened at five cents? Enough to probably have pissed it all away. That was a good tip!
good ridance. most movies are shit anyway
Is BK for BB a bad thing?? with market moving back up on bad UE number, and this news (I know it was expected)..EU numbers bad..used to believe market was a forward looking machine,,but how far forward is it looking ??
years, Decades, no must be centuries..LOL
So how much did douche Icahn lose on this fiasco?!
$100 million? Curious ...
Serves them right for signing on Rothschild Inc as its investment bank and investment advisor!
I'm surprised they lasted as long as they did. A 1980's business model and lots of overhead. Shows how far easy credit can carry a corpse of a company.
Ahh no wonder look at the flow chart of debt.. quite a maze to unravel there.
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