Blockbuster Video About to Go Bust?
Blockbuster's block is close to going bust, according to new financial information filed by the movie and video rental company.
If Blockbuster is operating on a quarter billion dollar line of credit — but it could face financial ruin if it is unable meet new conditions imposed on its lending.
Last month the company explored bankruptcy options, so this is not entirely without precedent.
The company lost $374 million last year and is facing increasing pressure from online rivals like Netflix.
The largest chain of movie and video game rental stores in the world appears to be teetering on the brink of collapse, according to a new filing with the SEC.
The company's current lifeblood is a $250 million line of credit, but that line of credit has some newly amended conditions, and the company isn't sure it can meet them.
"While we believe that all such conditions will be met and that we will be in a position to close on the amended credit facility on or about May 11, 2009, there can be no assurance regarding these matters," the company wrote in an April 6 filing with the Securities and Exchange Commission.
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