Blockbuster announced Thursday afternoon that the New York Stock Exchange has informed the company's it intends to begin the process to delist both its Class A and Class B shares.
Trading of Blockbuster shares was halted Thursday morning after the company said shareholders failed to approve a recapitalization plan that would allow it to comply with listing requirements.
The company's been working with its creditors to find alternatives to bankruptcy as it struggles with a $900 million debt load.
This is a dramatic about-face from last week: following its shareholder meetingBlockbuster said two shareholder proposals to allow the company to continue trading had been approved. Apparently, the early tally of votes was misleading. The two key proposals to help the stock's liquidity were a reverse stock split and the combination of its Class A and Class B shares
Some additional complicating factors: Blockbuster has a $42 million debt payment due today. On June 16 Blockbuster CEO Jim Keyes told me in an exclusive CNBC interview that the company is planning to make that payment. (Watch the interview here) But the company has not announced whether or not the payment was actually made. And Keyes' employment contract expires *this week*; we're awaiting comment from the company on whether Keyes will remain CEO through this tumultuous time.
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