Blockbuster Shares Only Worth 25 Cents (NYSE:BBI)

Blockbuster Inc. (NYSE:BBI) hit a new low today, 25 Cents a share, that's right, just one U.S. Quarter. 

BBI shares are down 33% today on very real bankruptcy fears, where shareholders could lose everything. 

(StreetInsider.com) Blockbuster Inc. (NYSE: BBI) is for the second time in a year, is warning that it may have to file for bankruptcy as the movie-rental company is becoming archaic under the stress of competitors and a changing consumer mindset.

In a filing late Tuesday with the Securities and Exchange Commission, Blockbuster detailed its declining sales and cash flow, and added that the current market conditions has created concerns that the company will not be able to continue.

BE KIND REWIND DAYS - OVER
"We rely upon cash on hand and cash from operations to fund our cash requirements for working capital, including rental library purchases, capital expenditures, commitments and payments of principal and interest on borrowing," Blockbuster stated in its 10-K filing on Tuesday. "Our ability to generate cash from operations has been negatively impacted by competitive industry."

The company outlined several continuing efforts to correct its balance sheets, including sell international operation and a possible swap of senior subordinated debt with Class A common stock, which could happen in the second or third quarter.

Blockbuster added that it would likely have to file for Chapter 11 bankruptcy protection to avoid creditors to be able to implement its strategies.

SOURCE: http://www.streetinsider.com/Corporate+News/Blockbuster+(BBI)+Warns+About+Bankruptcy/5447258.html