Blockbuster files for Chapter 11

Posted on September 28th, 2010 No Comments

Last week, Blockbuster Inc. officially filed for Chapter 11 bankruptcy protection after months of planning the filing.  Under Chapter 11, Blockbuster is able to continue operating its remaining 3,000 stores and online and kiosk rentals while they restructure the company and pay off debts.  The bankruptcy filing does not affect their international stores or business.

In the filing, Blockbuster listed $1.46 billion in debt and almost $1 billion in assets.  Blockbuster hopes to reduce its debt to around $100 million by transferring debt to equity.  Note holders agreed to pay $125 million in debtor-in-possession funds for the company to pay off its employees, suppliers and customers.

In order to become competitive against companies like Netflix and RedBox, Blockbuster plans to develop their online and kiosk rental services.

If you or someone you know is considering filing for Chapter 11 bankruptcy, contact the Galveston Chapter 11 bankruptcy attorneys of Gipson, Norman & Root at 281-332-4800 to learn more about your rights.

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Austin’s Highland Mall not approved for bankruptcy

Posted on September 20th, 2010 No Comments

Earlier this month, U.S. Bankruptcy Judge Craig Gargotta turned down a bankruptcy filing from the owner of Austin’s Highland Mall.  Highland Mall Retail LLC attempted to file for Chapter 11 bankruptcy in order to escape a lawsuit filed against them by the owners of the Dillard’s department store in the mall.

Dillard’s sued the mall in March 2009 in order to end their lease.  Dillard’s argued that Highland Mall Retail LLC had “lapsed in maintenance” and let the mall become a “retail ghost town”.  Officials from Dillard’s argued in bankruptcy court that the mall had no secured debt or reason to reorganize.

According to Dillard’s, the bankruptcy filing was and attempt “to gain a tactical advantage in litigation and/or negotiatons”.

If you or someone you know is considering filing for Chapter 11 bankruptcy, contact the Galveston Chapter 11 bankruptcy attorneys of Gipson, Norman & Root at 281-332-4800 to learn more about your rights.

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Texas Rangers exit bankruptcy in the black

Posted on September 15th, 2010 No Comments

According to court papers filed last month after the Texas Rangers officially exited from bankruptcy, former Rangers owner Tom Hicks was able to leave his last month with the team in the black.  In July, the Rangers took in a total of $111 million and had a net profit of $3 million.

Rangers executives cited a large number of home games and a jump in ticket sales as reasons for the success.  In July, ticket sales were up by 40 percent from June.  In June, the team saw a loss of $4.8 million.

Court documents also showed that the team has not had to use the $21.5 million loan from the Major League Baseball Association.

If you or someone you know is considering filing for bankruptcy protection, contact the Galveston bankruptcy lawyers of Gipson, Norman & Root at 281-332-4800 to learn more about your rights.

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Blockbuster to declare bankruptcy mid-September

Posted on September 8th, 2010 No Comments

Blockbuster CEO, Jim Keyes, told movie studios this week that he expects the company to file for Chapter 11 bankruptcy by mid-September.  Chapter 11 bankruptcy allows a business to restructure and pay off debts while continuing operations.

Keyes says he expects to close between 500 and 800 stores to help pay off nearly $1 billion in debt.  Blockbuster started to accumulate debt after the digital distributor Netflix and kiosk distributor RedBox began to grow in popularity a few years ago.  Last year, 1,000 Blockbuster stores had to be closed due to slowed sales.

Keyes told studios and creditors that he hopes the company will be out of bankruptcy within five months, after which, he plans to expand Blockbuster into the digital and kiosk distribution markets.

If you or someone you know is considering filing for Chapter 11 bankruptcy, contact the Galveston Chapter 11 bankruptcy attorneys of Gipson, Norman & Root at 281-332-4800 to learn more about your rights.

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Jeffrey P. Norman (retired) is Board Certified-Consumer Bankruptcy Law by the Texas Board of Legal Specialization and is Board Certified-Consumer Bankruptcy Law by the American Board of Certification. Ronald M. Gipson(1943-2008) is Board Certified-Consumer Bankruptcy Law by the Texas Board of Legal Specialization.
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