Blockbuster Stays Alive, Gets Extension

Blockbuster is granted another extension in its debt payment, which was due today.
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NEW YORK (

TheStreet

) --

Blockbuster

(BLOKA.PK)

was granted another extension in its debt payment, which was due today.

The movie rental retailer now has until Sept. 30 to make the payment.

This is the second extension Blockbuster has received this summer. Last month creditors moved the payment up one month.

Blockbuster said it continues to engage in discussion with creditors regarding recapitalization opportunities. "We appreciate the continued cooperation of our senior secured noteholders and the other parties involved in our ongoing recapitalization efforts," CEO Jim Keyes said in a statement. "While making progress, this extension allows additional time to complete these complex, multiparty negotiations."

Blockbuster also posted its second-quarter earnings after a delay last night, widening its loss.

During the quarter, the company lost $69 million, or 32 cents a share, compared with a loss of $37 million, or 21 cents, in the year-ago period. This was significantly larger than the loss of 24 cents analysts expected.

Blockbuster's revenue tanked 20% to $788 million from $982 million, also missing forecasts of $840.1 million.

The company previously canceled its call with analysts, which typically takes place after the earnings release, citing "the sensitive nature" of ongoing recapitalization efforts.

-- Reported by Jeanine Poggi in New York.

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