The seemingly interminable drama that is the downfall of Blockbuster received a strange new twist today, when it was revealed that a United States Trustee filed a motion stating that BB should liquidate under Chapter 7 bankruptcy.
The motion, which was filed yesterday with a New York bankruptcy court, says that Blockbuster’s planned auction process will end up benefitting the company very little. BB’s senior lenders, the filing alleges, will be the only beneficiaries of the auction. According to the filing:
“Based on the monthly operating reports and other information, it appears unlikely that there will be any balance to be paid to [Blockbuster following a sale],”
Is a Chapter 7 liquidation in the near future for defunct BB? Visit the comments and tell us what you think.
(via Home Media Magazine)