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Blockbuster Posts Wider Q2 Loss, Avoids Bankruptcy – For Now

In the end, Blockbuster’s delayed 2nd quarter (ended July 4) fiscal last results hardly seemed worth the wait.

The Dallas-based rental chain, which canceled an Aug. twelve call up with analysts after which postponed disclosing last results practically 19 hours, reported a burning of $69 million in comparison using a burning of $37 million through the previous-year period.

Blockbuster cited continuing store closures, decline in same-store sales, liquidity issues and price tag linked to recapitalization endeavours to the loss. income fell $194 million to $788 million from $982 million last year, nicely below Wall path expectations.

If there is a silver lining, Blockbuster mentioned it been given an additional extension, right up until Sept. 30, of the forbearance arrangement postponing payment of the $42.4 million attention payment.

“We appreciate the ongoing cooperation of our senior secured noteholders as well as another functions incorporated within our continuing recapitalization efforts,” mentioned CEO Jim Keyes, in the statement. “While making progress, this extension permits additional time to finish these complex, multiparty negotiations.”

Still, Blockbuster warned in its Aug. 13 quarterly filing using the Securities and trade Commission that, furthermore to some Chapter 11 bankruptcy, Chapter 7 liquidation is ordinarily a probability if adequate debtor-in-possession funding is not available.