(Clarification: If Blockbuster receives a high enough bid there could be some proceeds left for shareholders.

NEW YORK ( TheStreet) -- Blockbuster ( BLOAQ.PK), it seems is safe from liquidation, after a court decided last week the movie rental chain can proceed with an auction to sell the company.

But this move has left shareholders wondering: what happens to those investors who are still holding onto Blockbuster's pink sheets?

Since TheStreet has received several comments regarding this question, here's a special edition of Retail Stock Mailbag. Your questions and comments are appreciated, so keep e-mailing or Tweeting.

Clint McNichol wrote: "I am a budding individual investor and was wondering if you could tell me how the common shareholders are affected? If Blockbuster has the auction scheduled for April will common shareholders benefit at all? And why are the shares still traded?"

Carrie also e-mailed: "Reading your article on Blockbuster, what does this all mean to the shareholders of the pink sheet shares of the stock?"

Louis Arocho voices the same concern: "I just read your article on Blockbuster. I'm sorry for my amateur question, but if blockbuster sells what will happen with the common stock holders?"

Right now, if the offer stays at $290 million, shareholders will likely get nothing.

Pink sheets of Blockbuster rallied nearly 30% on Friday to close at 14 cents, and this could really be the last chance for investors to cut their losses and run.

>>Blockbuster Timeline: From Opening to Closing Credits

The "stalking horse" bid of $290 million Blockbuster received from Cobalt Video, a limited liability company formed by funds managed by Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Management and Värde Partners, will serve as an opening for the auction, which is expected to be held next month.

In order for shareholders to receive anything the final bid would have to be significantly higher.

Regardless of whether this is the final price tag or another bidder, like Carl Icahn, swoops in with a higher price, most of the money raised will go to the movie studios and other creditors.

Under the agreement negotiated in court last week, the studios and other creditors would get more money upfront for what they were owed and would receive a share of any offer above the $290 million bid.

The largest studios like Fox, Warner Brothers and Paramount among others, are owed about $100 million in administrative fees. If the deal is completed, they will receive about 24% immediately.

Unsecured lenders could get up to $7.5 million of the approximately $40 million Blockbuster owes them, as well as a cut of the money from any higher bid.

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--Written by Jeanine Poggi in New York.

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