Blockbuster’s latest move to avoid the gaping maw of oblivion comes in the form of an elimination of millions of dollars of credit exposure. The massive video chain announced today that it has eliminated the final $24 million of letters of credit it has maintained on behalf of Viacom, its former parent company. The move severs the last remaining tie between the two companies.
Blockbuster CFO Tom Casey was upbeat in a statement released by the chain:
“Eliminating this final $24 million of credit exposure frees up cash and helps our liquidity. . . Not only were we able to eliminate the previous $51 million of letter of credit exposure with Viacom in 2009, we also raised $675 million on our bond offering to extend our debt maturities into 2014. . . While 2009 was a challenging year in the overall macroeconomic environment, what we were able to accomplish in such a credit strapped market last year was truly remarkable.”
You’ve got to give Blockbuster credit; they’re refusing to go quietly into the night. What do you put the chain’s chances of survival at, Insiders? Are they better or worse than they were a few months ago?
[via Multichannel News]