A group of disgruntled shareholders may be seeking legal recourse should Blockbuster follow through with its alleged plans to file for bankruptcy in the next few weeks. Led by Niko Celentano, the group of 480 shareholders represents about a quarter of BB’s total voting shares. In a letter dated August 29, Celentano informs BB CEO Jim Keyes that his group will “prepare legal representation” should bankruptcy occur.
Celentano feels that he and his fellow shareholders have been “left in the dark” during BB’s lengthy discussions with its creditors, and believes that his group should be part of Blockbuster’s turnaround efforts. From the letter:
“With the news out now that Blockbuster is looking to file a bankruptcy, you have left us no choice but to prepare our legal representation should this occur and we as shareholders, not be included in any settlements. Please understand this loyal group of shareholders has stuck with the company through this tough time and fully expect to be part of the turnaround that is ahead. We still are hopeful that Blockbuster will be able to complete an out of court settlement here as this would be in the best interest of all involved.”
Will this letter have any effect on Blockbuster’s seemingly inevitable appointment with Chapter 11? What legal action might Celentano and company take against a bankrupted BB?
(via Home Media Magazine)