Summit To Liquidate Blockbuster Over Twilight Bill?
Summit Distribution LLC has filed suit against Blockbuster Inc. over unpaid bills in regards to rental copies of THE TWILIGHT SAGA: ECLIPSE, reports Reuters. Summit is seeking either the bankrupt rental chain pay its $6.8 million bill or be forced into Chapter 7 bankruptcy to liquidate assets in order to pay back the money.
Blockbuster claims that it cannot pay the bill as it works out its Chapter 11 bankruptcy, which it filled in September. The company is working on transforming its business from a mainly brick & mortal biz to a streaming, mail and kiosk model. Lionsgate activist shareholder Carl Icahn is poised to take over the firm as his Icahn Group lent Blockbuster $125 million to help it through its Chapter 11 transition.
Summit claims that for an independent studio the unpaid bill is a "significant hardship." The studio claims Blockbuster will make $8.3 million on the rental of ECLIPSE, which was the fourth best-selling DVD of 2010.
Blockbuster shares are currently trading at 10.2 cents.
Blockbuster claims that it cannot pay the bill as it works out its Chapter 11 bankruptcy, which it filled in September. The company is working on transforming its business from a mainly brick & mortal biz to a streaming, mail and kiosk model. Lionsgate activist shareholder Carl Icahn is poised to take over the firm as his Icahn Group lent Blockbuster $125 million to help it through its Chapter 11 transition.
Summit claims that for an independent studio the unpaid bill is a "significant hardship." The studio claims Blockbuster will make $8.3 million on the rental of ECLIPSE, which was the fourth best-selling DVD of 2010.
Blockbuster shares are currently trading at 10.2 cents.
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If Summit succeeds in liquidating Blockbuster, it will truly be the story of David and Goliath. The Blockbuster giant (Goliath) will have been taken down by the little guy, David (Summit) because Summit did what had to be done for so long and what its peers failed to do or simply didn't have the cajones to do.
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