Sept. 29, 2011
/PRNewswire/ -- As previously announced, on
April 6, 2011
, DISH Network Corporation ("
") agreed to purchase substantially all of Blockbuster Inc.'s assets (the "
"). The sale closed on
April 26, 2011
and ongoing business operations are being managed by Blockbuster L.L.C. ("
"), which is an affiliate of DISH and a non-debtor entity. As a result of the Asset Sale, BB Liquidating Inc. (f/k/a Blockbuster Inc.) ("
") and its debtor affiliates (collectively, the "
") have no further business operations nor assets to liquidate. None of the publicly owned stocks issued by Parent prior to the commencement of these chapter 11 cases, including its Class A and Class B common stock, which are currently trading on the OTCQB under the symbols BLOAQ and BLOBQ, respectively, are or will become securities in DISH or New Blockbuster, which are independent, non-debtor companies.
As detailed in Parent's Annual Report on Form 10-K, filed with the Securities and Exchange Commission on
July 12, 2011
, the Debtors continue to remind investors of their strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios. Stockholders of a company in chapter 11 generally receive value only if all claims of the company's secured and unsecured creditors are fully satisfied. In these cases, because the Asset Sale proceeds are significantly less than the Debtors' administrative liabilities, the Debtors anticipate that Parent stockholders will receive no value for their shares of its common and preferred stock. Accordingly, even though the Parent's common stock continues to be quoted on the Pink Sheets under the symbols BLOAQ and BLOBQ, it has no value and Parent's stockholders should not view the trading activity of its common stock on the Pink Sheets or any other market or trading platform as being indicative of the value Parent's stockholders will receive as part of the chapter 11 cases or in connection with any subsequent chapter 7 liquidation. The Debtors are in the process of changing their ticker symbol.
At this time, the Debtors are focused on the efficient and expeditious wind down of their chapter 11 estates. Once the Debtors conclude their wind down efforts, the Debtors anticipate seeking dissolution of their corporate existence and canceling the shares of all common and preferred stock issued by the Parent.