NEW YORK ( TheStreet) -- Blockbuster ( BBI) expects to be delisted from the New York Stock Exchange after it failed to approve a recapitalization plan that was necessary to comply with listing requirements. Blockbuster said in a Securities and Exchange filing that shareholders did not approve a plan to combine the company's Class A and Class B common stock or the option for a reverse stock split.
Management previously assumed that it had secured the necessary votes during its annual meeting last week, but the final count showed otherwise. As a result, the NYSE has informed the company that it intends to begin the process to delist both the Class A and Class B common stock, after it halted trading of Blockbuster stock earlier in the day. In November of 2009, Blockbuster was notified by the NYSE that its Class A common stock did not satisfy the requirement of an average closing price of $1 per share over a consecutive 30-day trading period. Under the NYSE's rules, Blockbuster had until the annual meeting to cure this deficiency. On top of this, the movie rental retailer also has $42 million in debt payment due today, and CEO Jim Keyes' three-year contract is set to expire this week. -- Reported by Jeanine Poggi in New York