Though it failed to make debt payments that were due to its creditors on July 1, Blockbuster has dodged the reaper’s scythe once again by reaching an agreement with said creditors that will give it a reprieve until August 13. In other, not-so-good-for-Blockbuster news, the New York Stock Exchange will be delisting the company’s stock, as prices for its shares have stayed well below the $1 threshold for more than 30 trading days.
Wedbush Morgan analyst Michael Pachter is of the opinion that BB’s stay of execution will be a brief one. Said Pachter:
“Six weeks is not a long time in a tough economy, where nobody has much credit . . . There’s nothing on the horizon that makes it look like Blockbuster is going to be more profitable.”
BB CEO Jim Keyes, who had his tenure (some would say inexplicably) extended indefinitely by Blockbuster’s board of directors, was understandably much more upbeat in his prognosis for the company:
“The agreement provides us with additional time and flexibility as we continue to take steps to implement a more appropriate capital structure . . . While we are making progress in our recapitalization efforts and are in the process of negotiating term sheets with these parties, these are complex multi-party negotiations and take time.”
How many lives does BB have left in it, Insiders? Is the end nigh for the once-mighty rental chain? Place your bets now in the comments section.