Blockbuster Reports Second Quarter 2010 Financial Results and Announces New Forbearance Agreement

by Zagros on August 13, 2020

Blockbuster Reports Second Quarter 2010 Financial Results and Announces New Forbearance Agreement as it Continues to Engage in Productive Recapitalization Discussions

August 13, 2020 8:44 AM ET

PR Newswire

DALLAS, Aug. 13

DALLAS, Aug. 13 /PRNewswire-FirstCall/ — Blockbuster Inc. (Pink Sheets: BLOKA; BLOKB), a leading global provider of media entertainment, today announced financial results for the second quarter ended July 4, 2020. The Company also reported that it has reached agreement with certain of its senior secured noteholders on a new Forbearance Agreement as it continues to engage in productive discussions with certain of these noteholders and other strategic parties regarding various recapitalization opportunities. The new Forbearance Agreement is substantially similar to the prior forbearance agreement and is effective until September 30, 2020, unless earlier terminated in accordance with its terms. The extension of the forbearance period to September 30, 2020, provides Blockbuster with additional time and flexibility as it seeks to implement a more appropriate capital structure to support the Company’s strategies for long-term growth and enhanced financial performance.

Jim Keyes, chairman and chief executive officer of Blockbuster Inc., stated, “We appreciate the continued cooperation of our senior secured noteholders and the other parties involved in our ongoing recapitalization efforts. While making progress, this extension allows additional time to complete these complex, multiparty negotiations. To take advantage of its unique multi-channel model and revitalize its global brand, Blockbuster will require an improved capital structure. Our objective is to complete a recapitalization as soon as possible so we are better positioned to focus our attention and resources on the strategic opportunities to continue our business transformation.”

Keyes continued, “In recent months, we have enhanced Blockbuster’s competitive position by:

  1. selectively advertising the availability of new releases 28 days before our largest rental competitors;
  2. launching a partnership with Comcast offering our by-mail service to their customers;
  3. growing Blockbuster Express to approximately 6,000 automated retail machines, deployed by NCR; and
  4. expanding Blockbuster On Demand through Verizon Wireless’ Droid X by Motorola, and through select Philips and Toshiba Blu-ray players.” Read More

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1 Nomo Blockbuster August 13, 2020 at 4:39 pm

Even if Blockbuster eventually makes its payment, it is not going to have enough cash to last until the end of the year. Per Blockbuster’s 10-Q, the company is bleeding cash with only about $64 million available compared to roughly $189 million six months ago. Compare that to the more than $1.2 BILLION in current liabilities, that means that for every $1 that Blockbuster has, it owes $20.

Looking at the statement of cash flows on the 10-Q, Blockbuster is actually using up more money to operate than not to operate as evidenced in the large amount of cash used (not provided, used) in operating activities. It is clear that Blockbuster does not know what is good for it and just continues to stand around lifelessly until somebody finally kills it and puts it out of its misery. There’s no reviving this company and anyone that continues to support it is delusional.


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