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1. What value will Blockbuster’s common stock have in the future? Is it now worthless?
Under the terms of the proposed plan of reorganization that is supported by the requisite
percentage of Blockbuster's senior secured note holders, there will be no distribution to or
recovery by the holders of Blockbuster's preferred or common stock. As you may know,
when a company files for Chapter 11, its primary obligation shifts to maximizing the value of
the company for its creditors. Shareholders of a company in Chapter 11 generally recover
value only if the claims of the secured and unsecured creditors are fully satisfied.
2. How can I buy or sell shares in Blockbuster?
Market makers not affiliated with Blockbuster may continue limited trading on the Over-the-
Counter Bulletin Board (OTCBB) and/or the Pink Sheets even while Blockbuster is involved
in the Chapter 11 proceeding. Blockbuster will not be involved in continuing or supporting
trading on the OTCBB or the Pink Sheets. You should contact your broker for further
information.
3. How will the Chapter 11 filing affect the value of Blockbuster’s bonds?
Under the terms of the proposed plan of reorganization, the Company’s 11¾ percent senior
secured notes would be exchanged for substantially all of the equity of a reorganized
Blockbuster, and there would be no recovery by the holders of the Company's outstanding
subordinated debt.
4. Will Blockbuster continue to make interest payments on its bonds?
Interest payments on Blockbuster debt securities have been suspended.
5. Will Blockbuster continue to issue quarterly financial results? Hold quarterly investor
conference calls?
Blockbuster expects to begin submitting monthly operating reports to the Bankruptcy Court
and also plans to post these monthly operating reports on the Investor Relations section of
Blockbuster.com. The Company plans to continue to file quarterly and annual reports with
the Securities and Exchange Commission. All of these reports will also be available in the
Investor Relations section of Blockbuster.com. It's unlikely that we will continue to hold
quarterly conference calls during the reorganization proceedings.
6. Is a shareholder entitled to file a claim with the court for the value paid for shares?
No.
7. Who at Blockbuster can shareholders speak with regarding the future of their
investment and whether to hold or sell?
Shareholders should consult with their own professional investment advisor to assess their
personal investment situation.
8. Where can investors go for more information?
Key court filings and other information related to Blockbuster’s Chapter 11 proceedings will
be available at www.kccllc.net/blockbuster. You may also send an inquiry by email to
investor.relations@blockbuster.com.
