On Sat, Oct 6, 2012 at 1:44 PM, PGage <[email protected]> wrote:
>
> I see. This (obviously) is not an area of expertise for me; I would have
> thought that there was some kind of bankruptcy judge or appointed trustee
> who would have sought to get a fair price. It seems Blockbuster's creditors
> would have been better served by liquidating the assets and paying off more
> of the debt obligations.

When Dish Network bought Blockbuster it was not their intention to
shutter the stores and sell the properties. So when the deal is being
made in court, Dish had an offer of $320 million (according to wiki).
I think by the time that offer was made the option for liquidation was
already off the table, but even if not, the options for the creditors
are to divide the $320 MM or to negotiate among the creditors,
Blockbuster Board of Directors, and the court how to liquidate and
divide assets. I do not think any single creditor could automatically
expect to get more from a liquidation than from the Dish offer even if
a liquidation brought in more total money.

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