Blockbuster CEO: liquidity enough for 2010, but in recapitalization talks with bondholders

By Caroline Salls

Pittsburgh, May 14 - Blockbuster Inc. chairman and chief executive officer Jim Keyes said Friday that the company expects to have enough liquidity during 2010, but it is in recapitalization talks with bondholders to boost liquidity, according to a company news release.

Keyes' statement was made in response to the filing of the company's 10-Q quarterly report that included cautionary language required by the Securities and Exchange Commission.

"The operating environment continues to be challenging, but we have made significant progress during the past year in reducing costs," Keyes said in the release.

"We believe we will continue to have adequate liquidity during 2010 through efforts including divesting non-core international assets, significantly improving working capital, continuing to reduce operating costs, and improving credit terms.

"Since there are execution risks related to these objectives, we are simultaneously pursuing a recapitalization and are in discussions with bond holders and other parties to improve our liquidity.

"We continue to have promising negotiations with strategic and financial partners.

"We remain optimistic about our ability to recapitalize Blockbuster and create a sustainable competitive advantage as the only multichannel provider of media entertainment."

Blockbuster is a Dallas-based provider of in-home movies and game entertainment.

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