BB Liquidating Inc. (BLIAQ)

[fredman]

It appears the board of directors is aligning itself towards a bankruptcy filing due to Blockbusters significant debt levels.

Kathleen Dore, previously of Canwest, was just nominated to Blockbuster's Board of Directors.

Canwest entered creditor bankruptcy protection in late 2009. Canwest's various acquisitions took a significant financial toll. As early as 2002, most of Canwest's operating income was going to pay interest on its high-interest rate debt. By 2007, the company's bonds were downgraded to junk status. By early 2009, it became clear the company's debt was not manageable in light of the global economic crisis, forcing Canwest into an extended set of negotiations with its lenders and a series of cost-cutting moves, ultimately resulting in bankruptcy.

http://en.wikipedia.org/wiki/Canwest

Gary J. Fernandes was appointed as a director of Blockbuster in December 2004. Mr. Fernandes founded Voyagers. Voyagers filed a petition under Chapter 7 of the federal bankruptcy laws in October 2001.

Sources: http://www.sec.gov/Archives/edgar/data/1085734/000119312510126227/ddefa14a.htm
http://www.sec.gov/Archives/edgar/data/1085734/000119312510126227/ddefa14a.htm

STRONG SELL