The word, ladies and gentlemen, is that Blockbuster is standing alone at this point, having eliminated its last outstanding letter of credit with Viacom for twenty four million dollars. The crew out at Blockbuster, for their part, are actually pretty happy about this. It frees up some cash, and helps their overall liquidity picture, which frankly makes perfect sense to be happy about given these economic conditions.
It’s been a long strange road to get there, and here’s the story direct from Blockbuster staffers:
“Not only were we able to eliminate the previous $51 million of letter of credit exposure with Viacom in 2009, we also raised $675 million on our bond offering to extend our debt maturities into 2014,” Casey added. “While 2009 was a challenging year in the overall macroeconomic environment, what we were able to accomplish in such a credit strapped market last year was truly remarkable.”
Let’s face it, folks, cash is king right now. Any time you can free up cash and get liquidity going, it’s definitely worth while. It’s hard to believe that a struggling firm like Blockbuster could get that much cash going, but they did it, and more power to them.