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  • dstrouss dstrouss Jul 17, 2011 12:35 PM Flag

    Did Dish assume the secured debt?

    According to the recently published 10-K the company owned the following subsidiaries.

    Blockbuster Argentina, S.A.
    Blockbuster Canada Co.
    Blockbuster Canada Inc.
    Blockbuster Entertainment (Ireland) Limited
    Blockbuster International Spain Inc.
    Blockbuster Italia, S.p.A.
    Blockbuster Polska Sp. Z.o.o.
    Blockbuster Video Espana S.L.
    Blockbuster Video Italy, Inc

    All the common shares of the UK, Mexico, Denmark, and Uruguay subsidiaries were apparently part of the purchase by Dish. Although the Schedules and Exhibits to the purchase agreement have not been published the author of this statement must have knowledge of their contents. That ,of course, would be subject to later revisions up to the latest date possible, which, of course, is subject to extensions to the time period.

    The curious part of this revelation is the now established law concerning the purchase of shares of non debtor subsidiaries in asset sales. It appears that the purchase of “Operating Assets” can be done in Bankruptcy sales under section 363 of the BK code, “free and clear of all liens or encumbrances‘”, However when you start purchasing “shares” of non debtor subsidiaries, it gets real sticky. Under settled law you may have to assume the debt that these subsidiary shares guaranteed. See the link to an article about this.

    The secured notes of Blockbuster were secured by all the assets of the debtor, which includes the shares of all the non debtor subs according to my understanding. The lawyers for Dish undoubtedly understand the risk associated with the purchase of these shares and are ok with that fact. This may be evidence that all the secured notes have been assumed by Dish.

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    • Romo,

      Corelon is working hard to get people to trade with him. He anounces when he is buying and when he is selling and he has the very best track record. Why wouldn't a smart person trade with him? He's always rignt, right?

      Why would he do that at these share prices? Because if you won't trade your shares those accumulating will have no chance of accumulating your shares. All that he does is designed to get you to trade and history has shown his trades are going to make you money.

      He knows the psycology of the market. Retail guys allways sell out at two points; just as shares start to fall from a high or they capitulate at the very bottom. look at any chart and see where the biggest volume is in a share that is down trending over a long period. Shorts sell just before a top and cover at the bottom. Retail investors sell just after a top or somwhere on the way down the other side with the bigest volume at the bottom ov a slide. This is where the shorts buy and sometimes reverse and go long if they have inside information that the shares will be very valuable in the future or if they are going to perform the same cycle again.

      But what happens to the guy who is following Corelon on the last runup before the shares spike on real good news. He sells just when Corelon says sell for the last time. What he doesn't know is that at that time he is selling to Corelon, who will never say sell again, just as the shares spike like VG did. Kwitch never told people he was buying at the bottom. But I'll bet he was screaming sell as the shares were running to their highs of 2.40.

      Everything the shares have done for the last few months was designed to get the retail guys to trade. Just trade and you will lose your shares before the big move. Just follow Corelon and you will miss the biggest move on the shares since the bankruptcy was filed.

    • Romo - do you have a crush on me?

      sounds like you admire me quite a bit.

      I understand.

      Best of luck.

    • "the only thing Greg was wrong about was the buy in point."

      the same could be said for folks who bought houses in florida and las vegas in 2006 or people who shorted silver a year ago maggie bought block at 1.50 and is down about 98% that is the only thing that matters when your money is poof gone.

    • due diligence? common sense? why bother? according to the billymag school of business just buy more if you see anonymous message board posters who dont believe with your views youll lose 90% but who cares riches are around the corner.

    • "billy this might be the stupidest thing youve said'

      Man that is a pretty strong statement. The list in which to chose it from is enormous. He does amuse though, so keep up the good work Bill.

      " did your guru ever give to the lawyer fund "

      I think Billy Boy Gomer answered that when he said and I paraphrase "Greg did a lot of work behind the scenes talking to prospective buyers, working with the lawyer and looking for investors". I took that as a NO he did not put in one thin dime which is just great when he tells others they are not privy to any info because they did not contribute.

    • stop blowing smoke up their @ss billy boy.

    • Mustang: They are just collaborating with the 8k and 10k statements. As of now the shareholders and bondholders get nothing. But in a month or two when negotiations are finalized, it will become apparent that the shares will be left intact and the bonds will be converted into equity.

    • Then why is the dish lawyer and indyke spouting that there will be no payout, if its all confidential?

    • Keep in mind that they signed a confidentiality agreement. They are not allowed to disclose anything until all the negotiations are final. Any disclosure will result in liability.

    • Last 3 past posted the contact info. in the thread I just bumped for you.I typed bank of new york mellon in the search bar to find the post.

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