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Corporate Restructuring :
Active Cases
: BB Liquidating Inc., et al. (f/k/a Blockbuster Inc., et al.)
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BB Liquidating Inc., et al. (f/k/a Blockbuster Inc., et al.)
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In re BB Liquidating Inc., et al. (f/k/a Blockbuster Inc., et al.), Case No. 10-14997 (BRL)
United States Bankruptcy Court, Southern District of New York |
FOR ADDITIONAL INFORMATION, PLEASE CONTACT THE INFORMATION LINE AT 877-660-6684
(outside of the U.S. or Canada please call 732-645-4110) OR BY EMAIL AT BlockbusterInfo@kccllc.com
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Sale of Substantially All of the Debtors’ Assets to DISH Network Corporation
On April 6, 2011, Blockbuster Inc. (now known as BB Liquidating Inc.) (the “Parent”) and its debtor affiliates (collectively, the “Debtors”) entered into a Purchase and Sale Agreement (as amended and restated on April 20, 2011, the “Purchase Agreement”) with DISH Network Corporation (“DISH”). Pursuant to the Purchase Agreement, DISH agreed to purchase substantially all of the Debtors’ assets (the “Asset Sale”). On April 26, 2011, the Asset Sale closed, whereupon DISH acquired all right, title and interests in and to substantially all of the Debtors’ assets, including the “Blockbuster” trade name.
As a result of the Asset Sale, the Debtors have no further business operations nor assets to liquidate. DISH is the current owner of the “Blockbuster” brand, inclusive of its ongoing retail, internet, and by-mail distribution channels. It is the Debtors’ understanding that such ongoing business operations are being managed by Blockbuster L.L.C. (“New Blockbuster”), which is an affiliate of DISH, a non-debtor entity and in no way related to or affiliated with the Debtors. Accordingly, all inquiries concerning the ongoing business of New Blockbuster should be directed to DISH and the operations of New Blockbuster will have no impact on the recoveries anticipated in these chapter 11 cases for either creditors or equity interest holders of the Debtors.
None of the publicly owned stocks issued by the Parent prior to the commencement of the chapter 11 cases, including its Class A and Class B common stock, which are currently trading on the OTCQB under the symbols BLOAQ and BLOBQ, respectively, are or will become securities of or have any interest in DISH or New Blockbuster, which are independent, non-debtor companies.
None of the publicly owned bonds issued by the Parent prior to the commencement of the chapter 11 cases are or will become securities of DISH or New Blockbuster, which are independent, non-debtor companies. As detailed in Parent’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on July 12, 2011 and which is available here, the Debtors continue to remind investors of their strong belief that there will be no value for the common stockholders of Parent in the bankruptcy liquidation process of the Debtors, even under the most optimistic of scenarios. Stockholders of a company in chapter 11 generally receive value only if all claims of the company’s secured and unsecured creditors are fully satisfied. In these cases, because the Asset Sale proceeds are significantly less than the Debtors’ chapter 11 administrative liabilities and other creditor claims, the Debtors anticipate that Parent stockholders will receive no value for their shares of its common and preferred stock. Accordingly, even though the Parent’s common stock continues to be quoted on the pink sheets, it has no value and Parent’s stockholders should not view the trading activity of its common stock on the Pink Sheets or any other market or trading platform as being indicative of the value Parent’s stockholders will receive as part of the chapter 11 cases or in connection with any subsequent chapter 7 liquidation. The Parent is in the process of changing its ticker symbols.
At this time, the Debtors are focused on the efficient and expeditious wind down of their chapter 11 estates. Once the Debtors conclude their wind down efforts, the Debtors anticipate seeking dissolution of their corporate existence and canceling the shares of any common and preferred stock issued by the Parent. All documents related to the Asset Sale can be found on this webpage under the link entitled "Sale Related Documents".
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General Information:
On September 23, 2010, each of the 13 Debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code"). The cases are jointly administered under Case No. 10-14997 (collectively, the "Bankruptcy Cases") and are pending before the Honorable Burton R. Lifland in the United States Bankruptcy Court for the Southern District of New York.
Pursuant to the Bankruptcy Code (specifically including, but not limited to, 11 U.S.C. § 362), a debtor is afforded certain protection against its creditors; the Bankruptcy Code prohibits creditors from taking certain actions related to debts that may have been owing prior to the commencement of the Bankruptcy Cases. If you believe that you might be a creditor of the Debtor(s) based upon debts arising prior to September 23, 2010 and you are considering taking action based upon your status as a creditor, you may wish to seek legal advice. The staff of the Clerk of the Bankruptcy Court and the staff of Kurtzman Carson Consultants LLC are not permitted to give legal advice.
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Important Dates, Deadlines & Documents: Some dates, deadlines and documents in the Debtors' Bankruptcy Cases that may be relevant to interested parties are set forth below: |
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| Filing Date |
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September 23, 2010 |
| Meeting of Creditors |
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February 14, 2011
(3:30 p.m. EST) |
| Notice of Final Equity Trading Order 123 |
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| Deadline to File Proofs of Claim |
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December 22, 2010
(5:00 p.m. EST) |
| Deadline for Governmental Units to File Proofs of Claim |
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March 22, 2011
(5:00 p.m. EDT) |
| Auction |
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April 5, 2011
(9:00 a.m. EDT) |
| Sale Hearing |
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April 7, 2011
(10:00 a.m. EDT) |
| Deadline to File Administrative Proofs of Claim |
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June 15, 2011
(5:00 p.m. EDT) |
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Parties and Addresses: |
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Blockbuster Claims Processing
c/o Kurtzman Carson Consultants LLC
2335 Alaska Avenue
El Segundo, CA 90245
T: (877) 660-6684
Please file proof(s) of claim, if any, via US Mail or other hand delivery system. Facsimile and other electronic delivery methods are not acceptable. You must file an originally executed proof of claim. If you would like a copy of your claim returned to you as proof of receipt, please enclose an additional copy and a self-addressed postage-paid envelope.
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Counsel to the Debtors
Stephen Karotkin, Esq
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, NY 10153
T: (212) 310-8000
F: (212) 310-8007
http://www.weil.com |
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Counsel to the Debtors
Martin A Sosland, Esq
Weil, Gotshal & Manges LLP
200 Crescent Court, Suite 300
Dallas, TX 75201
T: (214) 746-7700
F: (214) 746-7700
http://www.weil.com |
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United States Trustee
Brian Masumoto
Office of the United States Trustee
U.S. Department of Justice
33 Whitehall Street, 21st Floor
New York, NY 10004-2111
T: 212-510-0500
F: 212-668-2255
http://www.usdoj.gov/ust/r02/ |
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Counsel to Official Committee of Unsecured Creditors
Jay R. Indyke
Richard S. Kanowitz
Jeffrey L. Cohen
Cooley LLP
1114 Avenue of the Americas
New York, NY 10036
T: (212) 479-6000
F: (212) 479-6275
http://www.cooley.com |
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Counsel to the Purchaser
Martin Flics, Esq.
Paul Hessler, Esq.
Edward Rasp, Esq.
Linklaters LLP
1345 Avenue of the Americas
New York, NY 10105
T: (212) 903-9000
F: (212) 903-9100
http://www.linklaters.com |
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Note:
Kurtzman Carson Consultants LLC ("KCC") maintains this website at the direction of Weil, Gotshal & Manges LLP, counsel for the Debtors. KCC maintains this website for the public's convenience and, while KCC makes every attempt to assure the accuracy of the information contained herein, this website is not the website of the United States Bankruptcy Court and does not contain the complete, official record of the Bankruptcy Court. All documents filed with the Court are available for inspection at the Clerk of the Bankruptcy Court, Southern District of New York.
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