Blockbuster CEO: company negotiating term sheets; recapitalization plan not yet ready

By Jennifer Lanning Drey

Portland, Ore., June 24 - Blockbuster Inc. is actively negotiating term sheets with its bondholders and potential strategic partners, but work on the company's recapitalization plan is still under way, Jim Keyes, Blockbuster's chief executive officer, said Thursday.

Speaking at Blockbuster's annual stockholders meeting, Keyes said the company had previously hoped to present the plan at Thursday's gathering.

"A complete overhaul of the business model and the capital structure is not an event, but rather a work in process. It's not fast and it's not easy, but we are under way," he said.

"These discussions, I can only tell you, are enormously complex and require agreement among a number of different constituencies. I can assure you that we are working very hard to bring these discussions to fruition as quickly as possible," Keyes later added.

The CEO said Blockbuster is anxious to recapitalize because the company believes it has a fundamentally sound business plan going forward, as well as a unique position in the marketplace.

"We have - in spite of our financial challenges and our work and our focus on liquidity - been continuing to improve the core business model, beginning with our stores," he said.

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

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