Blockbuster going out of business?

Big Magilla
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Postby Big Magilla » Tue Apr 07, 2009 12:48 pm

Maybe Criddic should start looking for another job now.

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rain Bard
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Postby rain Bard » Tue Apr 07, 2009 12:03 pm

I guess they really are going to remove all the sad movies from their shelves, after all. And all the other ones too.

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Sonic Youth
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Postby Sonic Youth » Tue Apr 07, 2009 9:45 am

Blockbuster says it might not stay in business
Associated Press
April 6, 2009, 6:05PM

Blockbuster said Monday the risk that it may not complete financing deals raises “substantial doubt” about its ability to continue as a going concern.

Dallas-based Blockbuster, which has struggled amid the rising popularity of DVD-by-mail services like Netflix, disclosed the warning in a filing with the Securities and Exchange Commission. The company had already cautioned last month that its auditor was likely to raise doubts about its ability to stay in business.

A going-concern qualification refers to an auditor’s assessment of a company’s ability to continue to operate for the foreseeable future.

Last week, Blockbuster said its revolving and term loan agreement was amended, giving it a $250 million revolving loan refinancing that matures on Sept. 30, 2010. Lenders including JPMorgan also agreed to waive any default that could result if auditors attached a “going concern” classification.

But on Monday, the company said its lenders’ obligation to fund the $250 million credit facility is subject to meeting certain conditions, and there can be no assurances that these conditions will be met.

Even if the loan is funded, the company said it “may not have sufficient liquidity to finance the ongoing obligations of our business, which raises substantial doubt about our ability to continue as a going concern.”

Blockbuster said it believes that it will be in a position to close the amended credit facility by around May 11, though “there can be no assurance regarding these matters.”

Shares fell 3 cents to 85 cents in after-hours trading, having closed earlier at 88 cents.

Edited By Sonic Youth on 1239115583
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