Blockbuster gets more time to pay debt

A second extension delays today's payment deadline till the end of September.

By TheStreet Staff Aug 13, 2010 11:27AM

TheStreetBy Jeanine Poggi, TheStreet 

 

Blockbuster's debt payment deadline has been extended to Sept. 30.

 

The movie rental retailer was scheduled to make the payment today. This is the second extension Blockbuster has received this summer. Last month creditors moved the payment up one month.

 

Blockbuster said it continues to discuss recapitalization opportunities with its creditors.

 

"We appreciate the continued cooperation of our senior secured noteholders and the other parties involved in our ongoing recapitalization efforts," chief executive Jim Keyes said. "While making progress, this extension allows additional time to complete these complex, multiparty negotiations."

Blockbuster reported a second-quarter loss of $69 million, or 32 cents a share, compared with a loss of $37 million, or 21 cents, in the year-ago period. It was significantly larger than the loss of 24 cents analysts expected.

 

Blockbuster's revenue dropped 20% to $788 million from $982 million, missing forecasts for $840.1 million.

 

The company had canceled its call with analysts, citing "the sensitive nature" of ongoing recapitalization efforts.

 

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