From Document #2662
“On March 10, 2011, the Court held a hearing to consider the relief
requested in the Bid Procedures Motion (the “Bid Procedures Hearing”). After extensive negotiations with creditors and other parties in interest, the Court, on March 17, 2011, entered an Order [Dkt. No. 1223] (the “Bid Procedures Order”) granting, among other things, the Administrative Relief and approving a “waterfall” for use in allocating the 363 Sale proceeds (the “Waterfall”). The Waterfall was also subsequently approved by the Sale Order (as defined herein).”
This was the waterfall agreed to by the studios during the “extensive negotiations“. It cost them most of their operating period claims while other claimants were fully paid.
“The Debtors estimate that the total amount of remaining unpaid Sale Period Claims is approximately $7.7 million and that such claims will be paid in full or, to the extent necessary, reserved for in sufficient amount.”
“However, the average recovery for holders of Operating Period Claims generally, including those creditors paid in the ordinary course at the outset of these chapter 11 cases is anticipated to be approximately 87% (on total Operating Period accruals of roughly $782 million).”
Only 13% post petition approved Operating Period Claims were not paid. That’s 13% of 782 million dollars. Guess who was the biggest losers.
Here’s you answer from document #2665:
“The Debtors estimate unpaid allowed Operating Period Claims will total $117.9 million ($95.0 million held by Specified Studios and $22.9 million held by other claimants).”
So at that time, the studios were owed to lion share of unpaid approved Operating Period Claims. Only $22.9 million out of $782 million was owed to “other claimants“. If you read the whole status report you will find that most of that $22.9 million would eventually be paid, but the studios would be left holding the bag.
The reason this is important is it shows how much the studios wanted this sale to go forward. They supported it to the extent they gave up their valid claims to make sure it went as planned. In the end the studios probably lost $90 million or there about, making sure the sale went forward . They had the most and best lawyers in the negotiations over the waterfall, but came out the biggest losers.
I wonder just how important the sale of assets is to the studios, and what do they collectively expect Blockbuster and Dish to accomplish for them in the end.
that infrastructure, i believe, is being put into place, now. Upload content to sats, download to cell towers & kiosks. It will be a new 3rd pipe distribution of content, bypassing the cablecos and the present wireless. The studios will still move their product with the net, and the phones. But if i'm right, there will be a new 3rd distribution pipe, and it will have the capacity to absorb transfer of lots of rental movies! The studios will basically have the capacity to move dvd size movies, at a low cost.
Jerry, you have done quite a bit of research and you have your opinions on what is going to happen. Too bad it won't help with this company which has said that it will not have any business going forward. Imagine the lawsuits if they did start doing business, offered a POR as you suggest after telling people that in plain english.
If you sold because of the statement put out by this company and as the pumptards like to say it turned to Gold, you would have a pretty good case. Maybe you should use your research to invest in that sector. Don't tell me you are all in with this piece of junk.
I've been posting here for quite some time about spectrum and why its 'the thing'. Broadly, there are 2 main parts to the situation. 1. Bandwidth (the lack thereof or excess). Yes, movies can be gotten today on a lot of devices, but for a relatively few customers. Scaled up it wouldn't work. youtube alone, at present, uses about 1/2 of the capacity. little phone cameras are proliferating. everyone wants video. Its being sent over wireless and over cable net. Its full. Copper is inferior to ,Fiber is better, but not feasible to redo the entire nation in fiber. 2. Economy of Scale. the cablecos have paid for their buildout of coax cable distribution already. i'm old enough
to remember when there was no cable at all. To lay coax across the nation, It was subsidized and they were given monopolies. The are making money
hand over fist now, as its all been paid for. pure profit now. The net and the subsequent even greater demand for their coax system has been even more of a windfall. Their distribution system is always in demand, always full, and its just getting better as more net usage. So, they are sitting on the golden goose. cablecos are king. phonecos were second fiddle for a long time but are making a comeback with wireless. the towers are now up and paid for. they are catching up with the cablecos in that they too are profiting from their towers. but like them, they like having their distribution system full. They are making huge money. Its to their advantage to keep wireless spectrum full.
The studios look out over the landscape and want ways to move their movies to customers. Who has the distribution? How could a new distribution system come about, and who would benefit, and who wouldn't? Those are the questions. Analagous to John D. Rockefller and when he wanted to move his oil, but the RR had all the $ and was only way. John D. changed the game when he build pipelines. It made Standard Oil, (Esso) then Exxon, and was the whole 50 years of industrial ascension.
I understand all of that...the issue is you can't build that type of infra that easily...takes years to build and scale...if that's what Dish is going to do and BBI needs to wait for the same, then we are looking at a few more years in BK unfortunately:-(
Bill, IMO it could be that if movies are to be sent to any capable device, anywhere, it has to be via satellite. Otherwise the infrastructure to build towers or lay cable would be crazy. Could not imagine pushing a cable through the Andes mtns.
So what yet may need to be decided is who is in on getting movies sent to them to distribute?
The cell cos will want it sent to their towers for the subs to see on cells.
Cable already gets their signal from sat, then sends it to the subs at home, through a hopper or a DVR.
Possibly the franchise owners in England will exchange their store for a local distributor.
This may sound crazy but thats the norm here.
Guess I forgot to mention the encryption of sat. Since the cards for the receivers Dish has were so hacked, got Ergen to think to get the best encrypt possible. Now couple that with UV and you got the secure, non copied movie signal that can go anywhere.
Only thing left is the one with the most content, has the ties to the studios, and is just waiting.
Why make it sound so complex? Movies can be rented or purchased on mobile devices across multiple platforms today...this has nothing to do with mode of transmission...wonder why this has taken 2 yrs...if Studios, Icahn, Charlie, secured all wanted the sale to go thru and come out on the other side with digital play then what's the hold up...Dish's spectrum has nothing to do with it...may be, Charlie wanted to sell cellphones in BBI stores and that delayed the plan but still sounds ridiculous to hold BBI digital back for that...Dish can always start selling phones whenever they are ready, why hold BBI in BK for that? Blockbuster is too late to the VOD party already...