NEW YORK (
annual meeting was, for the most part, a disappointment. Investors eagerly awaited a progress report from management about how the movie rental retailer intends to repay its $1 billion in debt, but got few answers.
As a result, shares plunged as much as 10% earlier in the day before recovering. The stock closed down 0.8% to 28.5 cents.
Recap Blockbuster Annual Meeting
Here is a breakdown of what went down at the shareholder meeting:
The meeting started about 30 minutes late as the company were unable to reach quorum until some last-minute votes arrived. The annual meeting had originally been postponed 30 days, as CEO James Keyes had hoped to have reached an agreement with bond holders during the period, but that did not happen.
Dissident shareholder Gregory Meyer was added to the board of directors after a drawn-out proxy battle. Blockbuster was previously adamant about electing Meyer to the board, saying his bid was "hostile, self-serving proxy contest," and if elected, would be a risk to the future of the company.Nonetheless, Meyer, who founded a DVD rental kiosk business in 2001, called DVDXpress, and later sold it to Coinstar , was elected, though the final vote tally was not released.
Director Gary Fernandes, who Meyer had been attempting to unseat, was also reelected.
Shareholders approved a proposal to collapse the company's Class A and B shares into one issue of common stock. This should take place over the next two weeks.
A motion to allow the board to issue a reverse stock split was also approved.
There was a demonstration of Blockbuster's new digital capabilities, including On Demand technology.
There was no question-and-answer period after the business portion commenced, due, according to the company, to the late start of the meeting.
-- Reported by Jeanine Poggi in New York.