Blockbuster Misses Another Payment

Blockbuster is unable to repay junior noteholders.
Publish date:



) --



missed yet another bond payment, the company said on Thursday.

Blockbuster said in a Securities and Exchange filing that under an agreement it is banned from making the semi-annual payment to junior noteholders because the flailing movie rental chain still has not made a payment to senior bondholders that was due in July.

Blockbuster announced last month that it now has until Sept. 30 to repay the $42 million it owes to senior bondholders.

But it may not end up making that payment if reports of a prepackaged bankruptcy prove true. According to the

Los Angeles Times

, Blockbuster met with six major movie studios discussing their intention to enter a preplanned bankruptcy.

It would be essential for Blockbuster to retain the support of movie studios amid a bankruptcy filing, in order to ensure receiving new releases and continue business uninterrupted.

A preplanned bankruptcy, which the

Los Angeles Times

said would last about five months, would allow Blockbuster to escape leases at some of its underperforming stores. This could mean the closure of another 500 to 800 locations.

-- Written by Jeanine Poggi in New York.

>To contact the writer of this article, click here:

Jeanine Poggi


>To follow the writer on Twitter, go to


>To submit a news tip, send an email to: