BB Liquidating Inc. (BLIAQ)

[fredman]

Blockbuster Inc. (BBI, BBIB) Chairman and Chief Executive Jim Keyes said Tuesday the movie-rental giant is "progressing well" in various discussions with stakeholders regarding a recapitalization. "We're continuing to make progress," Keyes said in an interview, though he acknowledged there "isn't much new" on the talks since the company's May 13 quarterly conference call. "Our hope is that in time for the shareholder meeting, we'll be able to provide investors with more details about our plans," Keyes said.

"We're pleased with the alternatives we have. We have some favorable options and we are progressing well in various discussions." Blockbuster, which is in the middle of a proxy fight with investor and board hopeful Gregory Meyer, has scheduled its annual meeting for June 24.

Blockbuster is struggling to turn around its declining rental business at stores, fend off competition from Netflix Inc. (NFLX) and Coinstar Inc.'s (CSTR) DVD-kiosk operator, Redbox Automated Retail, and push its own new distribution channels, such as video-on-demand. But weaker-than-expected fourth-quarter results took a bite out of cash, and the company earlier this year warned it may have to file for bankruptcy protection. Keyes on Tuesday again declined to detail any of the options under consideration.

But earlier this month, financial news service Debtwire said holders of Blockbuster's subordinated debt had proposed receiving about 95% of Blockbuster's equity and a new $125 million senior unsecured payment-in-kind note. In exchange, subordinated debt holders would tender their bonds and contribute $25 million to $30 million in cash.

Blockbuster's class A shares recently traded down 7.5% at 34 cents. Its more thinly traded class B shares were down 9.8% at 25 cents.

Source: http://custom.marketwatch.com/custom/tdameritrade-com/html-story.asp?guid={b9523fe4-cccc-4270-ad71-93f8d5225897}

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