Blockbuster to be delisted from the NYSE

Blockbuster continues its downward spiral as it has been suspended from trading and forced to delist from the NYSE effective next Wednesday. Currently trading at $0.18 per share, Blockbuster failed to win majority stockholder approval last week for a reverse stock split that would have brought its stock above the $1 threshold and back in compliance with the NYSE. In a move that delays any immediate bankruptcy proceedings, Blockbuster was given a one-month reprieve on debt payments that the movie rental giant failed to pay on July 1st. The creditors, which hold nearly $440 million of Blockbuster’s whopping $920 million of debt, agreed to postpone any “remedies” until August 13th. In the upcoming weeks, Blockbuster is hoping to negotiate with partners to get a quick infusion of cash by possibly converting some bondholders to equity investors. This quick fix may be a little too little, a little too late and may only delay the inevitable bankruptcy as Blockbuster shows no signs of becoming profitable in the foreseeable future.

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Tags: bankruptcy, Blockbuster, debt, Financials, movie, NYSE