Blockbuster Inc. Sinks to 13 Cents per Share
Blockbuster Inc. (PINK:BLOKA) is nothing more than a penny stock these days, its been delisted from the NYSE (so forget NYSE:BBI) and these day's its fighting for survival and going the way of the VCR -- extinct.
Blockbuster Inc (BLOKA.PK) share are down 23% today, trading at 13.8 cents per share thanks to the company reporting a $69 million loss in Q2 2010. The second-quarter loss resulted in a 32 cent per share negative on $788 million revenue, up from a $37 million loss, or 21 cents per share, on $982 million revenue for the same period in 2009.
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Blockbuster has stayed silent on whether it will reorganize out-of-court or through Chapter 11 bankruptcy, which has been rumored all year. Blockbuster on Wednesday said it would not hold a conference call following the release of its earnings due to the complex nature of its recapitalization.
In July, it entered into a forbearance agreement with about 70 percent of its noteholders, and elected not to make a $42.4 million interest payment on bonds that were due July 2.
Blockbuster, facing about $1 billion of debt, has struggled to compete in an evolving digital marketplace against competitors like Netflix Inc (NASDAQ:NFLX) changing market.
Analysts have said that a prepackaged bankruptcy may be the company's best option.