http://www.marketwatch.com/story/blockbuster-may-file-for-bankruptcy-201 0-03-16?reflink=MW_news_stmp
NEW YORK (MarketWatch) -- Blockbuster Inc. shares fell sharply Wednesday after the struggling home-video-rental company said in a regulatory filing that it will likely file for bankruptcy if it's unable to address its debt load. Shares of Blockbuster fell 11 cents, or 27%, to 30 cents a share. The company's market capitalization now totals about $34 million, or just a fraction of its fourth-quarter revenue of $1 billion. The company reported an operating loss of $394 million in the period. Because of its losses and "the increasingly competitive industry conditions," the company sees "substantial doubt about our ability to continue as a going concern," according to the company's filing. Blockbuster said if its operating results don't improve and if it is unable to refinance or restructure its debt, it "could require us to pursue a restructuring of our indebtedness or file for protection under the U.S. Bankruptcy Code." See full Blockbuster filing. Blockbuster's debt, including capital lease obligations, totaled $964 million as of Dec. 31, according to its financial filings. Wedbush Morgan analyst Michael Pachter said in a published Reuters report that, "the key here is that it would be voluntary bankruptcy filing. Blockbuster is not being compelled at this point in their effort to continue to run the business and salvage what they've got." _______________________________________________ Medianews mailing list [email protected] http://lists.etskywarn.net/mailman/listinfo/medianews
