Financial Suicide: Traders Playing Bankrupt Blockbuster Shells (BLOAQ) (BLOBQ)
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For what it's worth, penny stock players are all over the shells of Blockbuster Inc. (OTC: BLOAQ) (OTC: BLOBQ) although they are expected to be canceled and will unlikely have any value.
BLOAQ is up 75 percent today on the pink sheets to $0.35 and is up 338 percent over the past week or so. BLOBQ is up 94 percent today.
From the filing:
We are currently winding up the Company's business and distributing the proceeds of the Asset Sale to our creditors. We expect that the Company’s bankruptcy case will continue to be administered under Chapter 11 of the Bankruptcy Code for a limited period of time and thereafter will be converted to a liquidation under Chapter 7 of the Bankruptcy Code. At that point our corporate existence will be terminated and our shares of common and preferred stock will be cancelled. Under the distribution scheme previously approved by the Bankruptcy Court, our creditors are generally entitled to receive any distribution of the Asset Sale proceeds before our stockholders are entitled to receive any such proceeds. Since the Asset Sale proceeds are significantly less than our pre-petition liabilities, holders of secured and unsecured debt will receive substantially less than payment in full for their claims and our stockholders will receive no value for their shares of our common and preferred stock. The distribution of Asset Sale proceeds and conversion of the Chapter 11 Cases to a Chapter 7 liquidation of the Company are expected to be completed within the next several months.
Of course the only piece of Blockbuster L.L.C that is worth anything is the part that has already by acquired and is a subisidary of DISH Network Corporation (NASDAQ: DISH).
BLOAQ is up 75 percent today on the pink sheets to $0.35 and is up 338 percent over the past week or so. BLOBQ is up 94 percent today.
From the filing:
We are currently winding up the Company's business and distributing the proceeds of the Asset Sale to our creditors. We expect that the Company’s bankruptcy case will continue to be administered under Chapter 11 of the Bankruptcy Code for a limited period of time and thereafter will be converted to a liquidation under Chapter 7 of the Bankruptcy Code. At that point our corporate existence will be terminated and our shares of common and preferred stock will be cancelled. Under the distribution scheme previously approved by the Bankruptcy Court, our creditors are generally entitled to receive any distribution of the Asset Sale proceeds before our stockholders are entitled to receive any such proceeds. Since the Asset Sale proceeds are significantly less than our pre-petition liabilities, holders of secured and unsecured debt will receive substantially less than payment in full for their claims and our stockholders will receive no value for their shares of our common and preferred stock. The distribution of Asset Sale proceeds and conversion of the Chapter 11 Cases to a Chapter 7 liquidation of the Company are expected to be completed within the next several months.
Of course the only piece of Blockbuster L.L.C that is worth anything is the part that has already by acquired and is a subisidary of DISH Network Corporation (NASDAQ: DISH).
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