"The auction for Blockbuster concluded at about 1 a.m. at the law office of Cadwalader, Wickersham & Taft in New York. Along with Dish Network, the final bidders were billionaire investor Carl Icahn, who joined with four liquidation firms, and a group of Blockbuster creditors.
The winning bid provides Blockbuster's secured creditors, who were owed $630 million before it filed for bankruptcy in September, with about $155 million. The remainder will go toward expenses associated with emerging from bankruptcy and to creditors that have provided Blockbuster with services during its Chapter 11 process, including movie studios."
"expenses associated with emerging from bankruptcy"
Of course the "expenses" are the lawyers, but "emerging" is what I found interesting. I wonder what lawyer he got that information from. Could dissolution be in any way described as "emerging", I think not.
Or this interview of Jim Keyes exactly one year to the day prvious the the LA Times article.
The Wrap, April 7, 2010
Blockbuster CEO Keyes: 'We're Rocky 10'
Question: Is the Blockbuster brand its most valuable asset?
Jim: That's the key. We have the broadest base of customers worldwide. Everyone talks about Netflix's 12 million customers, but they rarely talk about Blockbuster's 50 million.
Question: There was a lot of bad press regarding Carl Icahn's recent decision to sell his stake in Blockbuster. He's been one of your big champions. What does this mean for you and the company?
Answer: It's not a bad thing. Carl remains a good friend. He's been helpful to us during his tenure on the board and been a big supporter of our initiatives. He has other investments and boards, but we will stay in close contact. He could become even more helpful on the outside.
Question: Is there truth to the rumors that Blockbuster will file for bankruptcy?
Answer: Going forward, there is a difference between risk and reality. There is always a risk in a company with tight liquidity of Chapter 11, but it is not always the preferred solution.
These reports happened about a year ago when we hired Kirkland & Ellis to recapitalize the company in an out-of-court fashion. This was a time when maturing and financial markets were closed, and they helped use secure financing and kept us out of bankruptcy. Unfortunately, Bloomberg reported that we hired Kirkland to help with bankruptcy, which caused our equity value to drop by 80 percent. It was an unnecessary destruction of shareholder value.
Recently in our annual 10K filing we had some language about bankruptcy, and that got built into headlines. With that frenzy of perception, our equity values went down again.
If one isn't careful, this becomes a self-fulfilling prophecy, but fortunately we did not have a run on the bank in terms of our supply side and they did not put our company on cash terms.
If this were a movie, what kind of movie would Blockbuster be starring in?
We're "Rocky 10." They had us on the ropes in "Rocky" 6 through "9," but we're coming back.
Kirkland Ellis was hired at about the same time they created the Trust. Later they hired Rothschild.
The Rocky 10 comment was a gutsy statement, and if you look up the article it has a nice picture of Keyes smiling, ostensibly as he made the statement. He looks happy, perhaps in a confident way. The article has more in it. Jimbo mentions his best partners again, the studios... this is a big deal.... and the studios took a big hit to make the asset sale happen. Samsung is determined to have the studios content on the web.. Worldwide.... they can't do this without studio cooperation. And now we see Samsung touting their relationship with Blockbuster, looks like the studios are Keyes best partners to me. Yep, Happily Confident Jim Keyes, wrecked the company to re-postion it to sell studios content worldwide on the Web, and he put the most valueable part of the company outside creditors reach.....but never mentioed that to the media or shareholders. Then way after Bankruptcy and the Asset Sale, we notice that no one sold the shares or any portion of the capital structure when Blockbuster, Inc. tells the world that the corporation sold every asset. You can check the chart, the event was on June 1st of 2011......no selling occured to speak of and the shares didn't fall in price. It takes a happy confident bunch of shareholders to hold on that kind of news.