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  #1  
Unread January 20th, 2011, 09:05 PM
JustTheFacts JustTheFacts is offline
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I think the FAT LADY is now singing

Blockbuster wins 3-month restructuring extension
NEW YORK | Thu Jan 20, 2011 1:38pm EST

NEW YORK (Reuters) - Blockbuster Inc. on Thursday received three more months to negotiate store leases with its landlords -- its second restructuring extension this week -- giving the video rental chain more time to try to reorganize its business.

Judge Burton Lifland of the U.S. Bankruptcy Court in Manhattan gave the company the go-ahead to extend the lease discussions as the company tries to decide which stores it will close and what a reorganized Blockbuster will look like.

The move came one day after the judge extended until March 21 the company's exclusive right to file a bankruptcy plan. After that, the company could ask the court for another extension or investors could file their own restructuring plan for the company.

Blockbuster has been closing stores since it filed for bankruptcy on September 23, hoping to wipe out much of its $1 billion in debt. It has said it wants to emerge from bankruptcy with more focus on digital delivery of video.

Earlier this week Blockbuster received a three-week extension from its lenders to February 4 from January 14 to file a bankruptcy reorganization plan with the court.

Lifland denied a request by a group of Blockbuster shareholders that had asked the company to give it more financial information, particularly about its push into the digital sector. The group has said in court documents that it believes the company is worth more than $1.2 billion.

In fact, Lifland said that he believes there is very little value in the Blockbuster company, at least that has been shown.

"It's pretty hard to say that this debtor is anything but insolvent," Lifland said, adding that he wondered to what lengths the company would need to go to continue operating beyond the three-month extension he had just awarded for the lease negotiations.

The length of time that companies in bankruptcy have to decide which stores to keep open is currently 210 days, including a 90-day extension like the one Blockbuster received. Some lawyers have argued that the time period is too short and does not give a company enough runway to produce a workable restructuring plan.

Blockbuster planned to close 72 stores by the end of 2010 and another 110 stores in the first quarter, court documents show.

The case is In re: Blockbuster Inc, U.S. Bankruptcy Court, Southern District of New York, No. 10-14997.
  #2  
Unread January 20th, 2011, 09:16 PM
UnderPressure UnderPressure is offline
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Oh that's great! Now they will be even more hard on us....if that's even possible...
  #3  
Unread January 20th, 2011, 09:37 PM
BBStoreMgr112233 BBStoreMgr112233 is offline
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Originally Posted by JustTheFacts View Post
"It's pretty hard to say that this debtor is anything but insolvent," Lifland said, adding that he wondered to what lengths the company would need to go to continue operating beyond the three-month extension he had just awarded for the lease negotiations.
This isn't exactly breaking news. The fact the company is in BK shows it isn't solvent. If it was, it wouldn't be in BK.

The idiot share holders think the value of Blockbuster liquidated or sold is greater than its debt. This is really just a desperate attempt by share holders to get something for their stock because the current plan will wipe them out completely and give the company to the senior bond holders.

Furthermore, they believe Keyes and Ichan are in cahoots and this is an elaborate plan to hand Ichan controlling interest in the company. They believe there are buyers out there that would buy the company and its 1 billion in debt and this option has not been fully explored.

Lastly, I doubt a billionaire investor like Ichan is going to allow Blockbuster to not survive BK. He's invested a couple hundred million to make this happen and he will do what he needs to do to make sure Blockbuster gets through BK so he and his group can get ownership. Now after BK, anything is possible because then the company would actually be worth more than what he invested to get it, and it would be essentially debt free, which is yet another reason the current share holders are in such an uproar.
  #4  
Unread January 20th, 2011, 09:41 PM
djsdojo djsdojo is offline
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At least I know I will be good until the end of the year I know I work for one of the better stores in our district. But shutting down 75 stores is a good thing for this company as those former customers will drive down to the next one down the street making that store pick up on business.
  #5  
Unread January 20th, 2011, 10:10 PM
itirnitii itirnitii is offline
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Originally Posted by djsdojo View Post
At least I know I will be good until the end of the year I know I work for one of the better stores in our district. But shutting down 75 stores is a good thing for this company as those former customers will drive down to the next one down the street making that store pick up on business.
I think that's a hasty assumption... they can just as easily see how ruined Blockbuster is and choose Redbox/Netflix instead... especially if the drive to the next Blockbuster is further away...

Is anyone else a little tickled by the amount of extension this company gets on everything concerning their imminent downfall? It reminds me of a failing college student hassling all their professors for extensions on papers and make-ups on tests... An extension isn't going to help you pass the fucking class if you don't change your behavior.
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Last edited by itirnitii; January 20th, 2011 at 10:15 PM.
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  #6  
Unread January 21st, 2011, 02:52 AM
djsdojo djsdojo is offline
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Originally Posted by itirnitii View Post
I think that's a hasty assumption... they can just as easily see how ruined Blockbuster is and choose Redbox/Netflix instead... especially if the drive to the next Blockbuster is further away...
Well we have customers from other stores drive to our store just because we are open later.
  #7  
Unread January 21st, 2011, 04:17 AM
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wheresmikey wheresmikey is offline
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put on your aprons and attach your pieces of flare because blockbuster is restructuring into a chain of family family restaurants.
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  #8  
Unread January 21st, 2011, 05:01 AM
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Aphrodite Aphrodite is offline
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Originally Posted by djsdojo View Post
Well we have customers from other stores drive to our store just because we are open later.
When another store in my district closed, we only got around 30% of their business.
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  #9  
Unread January 21st, 2011, 08:20 AM
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same here aph.....
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  #10  
Unread January 21st, 2011, 03:12 PM
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I don't get it, our Twitter "Secret Password" promotion brought in so many people. I thought we were raking in the big bucks now, with BBI having a finger on the pulse of the social media hivemind.
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