Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - BLOCKBUSTER INC | d8k.htm |
Exhibit 99.1
| UNITED STATES BANKRUPTCY COURT |
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| SOUTHERN DISTRICT OF NEW YORK |
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| X | ||||
| In re: | : | Chapter 11 | ||
| : | ||||
| BLOCKBUSTER INC., et al.1 | : | Case No: 10-14997 | ||
| : | ||||
| Debtors. | : | Jointly Administered | ||
| X | ||||
Monthly Operating Report For the Period
From November 29, 2010 to January 2, 2011
| DEBTORS’ ADDRESS: | 1201 Elm Street | |
| Dallas, Texas 75270 | ||
| Telephone: (214) 854-3000 | ||
| Facsimile: (214) 854-4848 | ||
| DEBTORS’ ATTORNEYS: | Stephen Karotkin | |
| WEIL, GOTSHAL & MANGES LLP | ||
| 767 Fifth Avenue | ||
| New York, New York 10153 | ||
| Telephone: (212) 310-8800 | ||
| Facsimile: (212) 310-8007 | ||
| -and- | ||
| Martin A. Sosland (admitted pro hac vice) | ||
| WEIL, GOTSHAL & MANGES LLP | ||
| 200 Crescent Court, Suite 300 | ||
| Dallas, Texas 75201 | ||
| Telephone: (214) 746-7700 | ||
| Facsimile: (214) 746-7700 | ||
This Monthly Operating Report (“MOR”) has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in these chapter 11 cases and is in a format acceptable to the United States Trustee. The financial information contained herein is limited in scope and covers a limited time period. Moreover, such information is preliminary and unaudited, and is not prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States.
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.
| /s/ Bruce Lewis |
2/15/2011 | |||
| Bruce Lewis | ||||
| Senior Vice President and Controller | ||||
| Blockbuster Inc. |
| 1 | The Debtors, together with the last four digits of each Debtor’s federal tax identification number, are Blockbuster Inc. (5102); Blockbuster Canada Inc. (1269); Blockbuster Digital Technologies Inc. (9222); Blockbuster Distribution, Inc. (0610); Blockbuster Gift Card, Inc. (1855); Blockbuster Global Services Inc. (3019); Blockbuster International Spain Inc. (7615); Blockbuster Investments LLC (6313); Blockbuster Procurement LP (2546); Blockbuster Video Italy, Inc (5068); Movielink, LLC (5575); Trading Zone Inc. (8588); and B2 LLC (5219). |
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
| In re | BLOCKBUSTER INC., et al. |
Case No. | 10-14997 | |||||
| Debtor | Reporting Period: | 11/29/2010 - 1/2/2011 | ||||||
| Federal Tax I.D. # | 52-1655102 | |||||||
CORPORATE MONTHLY OPERATING REPORT
| REQUIRED DOCUMENTS |
Form No. |
Document |
Explanation | |||
| Schedule of Cash Receipts and Disbursements | MOR-1 | x | ||||
| Bank Reconciliation (or copies of debtor’s bank reconciliations) | MOR-1 (CON’T) | x | ||||
| Copies of bank statements |
x | |||||
| Cash disbursements journals |
x | |||||
| Statement of Operations | MOR-2 | x | ||||
| Balance Sheet | MOR-3 | x | ||||
| Status of Post-petition Taxes | MOR-4 | x | ||||
| Copies of IRS Form 6123 or payment receipt |
x | |||||
| Copies of tax returns filed during reporting period |
x | |||||
| Summary of Unpaid Post-petition Debts | MOR-4 | x | ||||
| Listing of Aged Accounts Payable |
x | |||||
| Accounts Receivable Reconciliation and Aging | MOR-5 | x | ||||
| Taxes Reconciliation and Aging | MOR-5 | x | ||||
| Payments to Insiders and Professionals | MOR-6 | x | ||||
| Post Petition Status of Secured Notes, Leases Payable | MOR-6 | x | ||||
| Debtor Questionnaire | MOR-7 | x |
FORM MOR
Page 2 of 10
| In re | BLOCKBUSTER INC., et al. |
Case No. | 10-14997 | |||||
| Debtor | Reporting Period: | 11/29/2010 - 1/2/2011 |
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
(in millions)
| 5 weeks ended | For the Period | |||||||
| 1/2/2011 | 9/23/2010-1/2/2011 | |||||||
| Cash flows from operating activities: |
||||||||
| Net income (loss) |
$ | (11.7 | ) | $ | (90.3 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
||||||||
| Depreciation and intangible amortization |
5.2 | 27.4 | ||||||
| Rental library purchases |
(9.6 | ) | (60.9 | ) | ||||
| Rental library amortization |
20.7 | 62.0 | ||||||
| Loss on sale of store operations |
— | 19.3 | ||||||
| Impairment of long-lived assets |
18.8 | 18.8 | ||||||
| Non-cash share-based compensation |
0.2 | 0.2 | ||||||
| Gain on sale of store operations |
— | — | ||||||
| Deferred taxes and other |
0.7 | (28.0 | ) | |||||
| Reorganization items, net of cash payments |
(5.7 | ) | (0.2 | ) | ||||
| Changes in operating assets and liabilities: |
||||||||
| Change in receivables |
(5.3 | ) | (4.0 | ) | ||||
| Change in merchandise inventories |
11.5 | (11.2 | ) | |||||
| Change in prepaid and other assets |
(14.2 | ) | (20.1 | ) | ||||
| Change in accounts payable |
26.9 | 115.0 | ||||||
| Change in accrued expenses and other liabilities |
(3.5 | ) | 10.6 | |||||
| Net cash provided by (used in) operating activities |
34.0 | 38.6 | ||||||
| Cash flows from investing activities: |
||||||||
| Capital expenditures |
(2.2 | ) | (6.2 | ) | ||||
| Change in restricted cash |
— | 0.8 | ||||||
| Proceeds from sale of store operations |
(3.3 | ) | — | |||||
| Other investing activities |
0.1 | 0.2 | ||||||
| Net cash provided by (used in) investing activities |
(5.4 | ) | (5.2 | ) | ||||
| Cash flows from financing activities: |
||||||||
| Proceeds from DIP Financing |
20.0 | 93.8 | ||||||
| Repayments on DIP Financing |
(43.3 | ) | (93.8 | ) | ||||
| Repayments on senior secured notes |
— | — | ||||||
| Debt financing costs |
— | (4.6 | ) | |||||
| Capital lease payments |
(0.2 | ) | (0.9 | ) | ||||
| Net cash provided by (used in) financing activities |
(23.5 | ) | (5.5 | ) | ||||
| Effect of exchange rate changes on cash |
— | — | ||||||
| Net decrease in cash and cash equivalents |
5.1 | 27.9 | ||||||
| Cash and cash equivalents at beginning of period |
61.1 | 38.3 | ||||||
| Cash and cash equivalents at end of period |
$ | 66.2 | $ | 66.2 | ||||
FORM MOR-1
Page 3 of 10
| In re | BLOCKBUSTER INC., et al. |
Case No. | 10-14997 | |||||
| Debtor | Reporting Period: | 11/29/2010 - 1/2/2011 |
BANK RECONCILIATIONS
Continuation Sheet for MOR-1
| GL# |
Bank Name |
Bank Balance | Deposits & Transfers in Transit |
O/S,
Bank Service Charges, Adjustments to GL |
Other Reconciling Items |
GL Balance | ||||||||||||||||
| 575.1017.0003 |
Wachovia ProCo | $ | 45,948 | $ | — | $ | — | $ | — | $ | 45,948 | |||||||||||
| 80017.1017.0005 |
JPM Chase Lockbox | $ | 417,792 | $ | — | $ | — | $ | — | $ | 417,792 | |||||||||||
| 25.1017.0006 |
Wells Fargo Avista Funding | $ | 450,573 | $ | — | $ | — | $ | — | $ | 450,573 | |||||||||||
| 03101.1017.0006 |
Wachovia Funding | $ | 2,323,697 | $ | — | $ | — | $ | — | $ | 2,323,697 | |||||||||||
| 03501.1017.0006 |
JPM Chase Met Life Funding | $ | 81,221 | $ | — | $ | — | $ | — | $ | 81,221 | |||||||||||
| 03101.1019 |
Wachovia Cash Concentration | $ | — | $ | 2,648,723 | $ | — | $ | — | $ | 2,648,723 | |||||||||||
| 25.1024 |
Right of Setoff | $ | — | $ | — | $ | — | $ | — | $ | 55,790 | |||||||||||
| 25.1025 |
Wells Fargo Avista Disbursements | $ | — | $ | — | $ | (453,122 | ) | $ | — | $ | (453,122 | ) | |||||||||
| 575.1025 |
Wachovia ProCo AP Disbursements | $ | — | $ | — | $ | (12,609 | ) | $ | — | $ | (12,609 | ) | |||||||||
| 03101.1025 |
Wachovia AP Disbursements | $ | — | $ | — | $ | (1,205,246 | ) | $ | — | $ | (1,205,246 | ) | |||||||||
| 03501.1025 |
BofA Sedgwick Ins Disbursements | $ | 132,271 | $ | — | $ | (184,544 | ) | $ | (462 | ) | $ | (52,735 | ) | ||||||||
| 80017.1025 |
BofA AP Disbursements | $ | — | $ | — | $ | (506 | ) | $ | — | $ | (506 | ) | |||||||||
| 03101.1026 |
Wachovia EFT | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| 03101.1032 |
Wachovia Payroll Disbursements | $ | — | $ | — | $ | (4,542,980 | ) | $ | 16,811 | $ | (4,526,169 | ) | |||||||||
| xxxxx.10370000 |
Single Store depository only accounts | $ | — | $ | — | $ | — | $ | — | $ | 1,030,630 | |||||||||||
| xxxxx.10380000 |
Store concentration accounts | $ | 3,583,724 | $ | 6,377,876 | $ | (15,123 | ) | $ | (39,813 | ) | $ | 9,906,663 | |||||||||
| 03101.10390000 |
Bank of New York Returned Checks | $ | 1,115 | $ | — | $ | — | $ | — | $ | 1,115 | |||||||||||
| xxxxx.10480000 |
Cash - Store Drawer | $ | — | $ | — | $ | — | $ | — | $ | 2,226,075 | |||||||||||
| 1049.0001 |
OL NRP Sale-Corp E-Comm | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| 1049.0002 |
OL NRP Return - Corp Ecomm | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| 1049.0005 |
Ecomm Tender Clearing | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| 1049.0006 |
Ecomm Refund Clearing | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| 1049.0008 |
Ecomm Digital Rental | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| 1049.0009 |
Ecomm Digital Rental Refund | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| 1049.0010 |
Host Payment Tender Clearing | $ | — | $ | — | $ | — | $ | 7,560 | $ | 7,560 | |||||||||||
| xxxxx.1060.0001 |
Mastercard/Visa Draft Capture | $ | — | $ | 11,796,595 | $ | — | $ | (7,904 | ) | $ | 11,788,691 | ||||||||||
| xxxxx.1060.0002 |
American Express Draft Capture | $ | — | $ | 1,144,548 | $ | — | $ | (2,537 | ) | $ | 1,142,011 | ||||||||||
| xxxxx.1060.0004 |
Discover Draft Capture | $ | — | $ | 571,582 | $ | — | $ | (107 | ) | $ | 571,475 | ||||||||||
| xxxxx.1060.0006 |
Debit Card Draft Capture | $ | — | $ | 3,976,967 | $ | — | $ | (1,295 | ) | $ | 3,975,672 | ||||||||||
| xxxxx.1060.0007 |
E-check Draft Capture | $ | — | $ | 44,747 | $ | — | $ | 0 | $ | 44,747 | |||||||||||
| xxxxx.1060.0011 |
Paypal Draft Capture | $ | — | $ | 26,248 | $ | — | $ | 0 | $ | 26,248 | |||||||||||
| 03101.1078.0004 |
Wachovia Overnight Investment | $ | 35,494,000 | $ | 357 | $ | — | $ | — | $ | 35,494,357 | |||||||||||
| 25.1078.0005 |
Citigroup Investments | $ | 193,890 | $ | — | $ | — | $ | — | $ | 193,890 | |||||||||||
| Total Cash & Cash Equivalents | $ | 42,724,231 | $ | 26,587,644 | $ | (6,414,130 | ) | $ | (27,747 | ) | $ | 66,182,493 | ||||||||||
| * | Single store depository accounts are reconciled one month in arrears. |
Note: Due to the voluminous nature of the request for the Debtors’ bank statements and disbursement journals, summaries of these requests have been provided.
FORM MOR-1 (CONT.)
Page 4 of 10
| In re | BLOCKBUSTER INC., et al. |
Case No. | 10-14997 | |||||
| Debtor | Reporting Period: | 11/29/2010 - 1/2/2011 |
STATEMENT OF OPERATIONS (Income Statement)
(in millions)
| 5 weeks
ended 1/2/2011 |
For the
Period 9/23/2010-1/2/2011 |
|||||||
| Revenues: |
||||||||
| Base rental revenues |
$ | 139.9 | $ | 364.3 | ||||
| Previously rented product (“PRP”) revenues |
28.8 | 72.7 | ||||||
| Total rental revenues |
168.7 | 437.0 | ||||||
| Merchandise sales |
32.8 | 78.2 | ||||||
| Other revenues |
5.0 | 11.7 | ||||||
| 206.5 | 526.9 | |||||||
| Cost of sales: |
||||||||
| Cost of rental revenues |
57.2 | 147.1 | ||||||
| Cost of merchandise sold |
28.2 | 63.1 | ||||||
| Total cost of sales |
85.4 | 210.2 | ||||||
| Gross profit |
121.1 | 316.7 | ||||||
| Operating expenses: |
||||||||
| General and administrative |
108.4 | 307.3 | ||||||
| Advertising |
14.8 | 26.0 | ||||||
| Depreciation and intangible amortization |
5.2 | 27.4 | ||||||
| Impairment of goodwill and other long-lived assets |
18.8 | 18.8 | ||||||
| 147.2 | 379.5 | |||||||
| Operating income (loss) |
(26.1 | ) | (62.8 | ) | ||||
| Interest expense |
0.5 | 1.2 | ||||||
| Interest income |
— | — | ||||||
| Other items, net |
0.5 | 0.8 | ||||||
| Income (loss) from continuing operations before reorganization items and income taxes |
(27.1 | ) | (64.8 | ) | ||||
| Reorganization items, net (income)/loss |
(6.1 | ) | 9.7 | |||||
| (Benefit)/provision for income taxes |
— | 0.5 | ||||||
| Equity in (income)/loss of non-debtor subsidiaries |
(9.3 | ) | (4.0 | ) | ||||
| Income (loss) from continuing operations |
(11.7 | ) | (71.0 | ) | ||||
| Income (loss) from discontinued operations, net of tax |
— | (19.3 | ) | |||||
| Net income (loss) |
(11.7 | ) | (90.3 | ) | ||||
| Preferred stock dividends |
— | — | ||||||
| Net income (loss) applicable to common stockholders |
$ | (11.7 | ) | $ | (90.3 | ) | ||
FORM MOR-2
Page 5 of 10
| In re | BLOCKBUSTER INC., et al. |
Case No. | 10-14997 | |||||
| Debtor | Reporting Period: | 11/29/2010 - 1/2/2011 |
BALANCE SHEET
(in millions)
| As of 1/2/2011 | ||||
| Assets |
||||
| Current assets: |
||||
| Cash and cash equivalents |
$ | 66.2 | ||
| Receivables, less allowances |
35.3 | |||
| Receivables from non-debtor subsidiaries |
27.6 | |||
| Merchandise inventories |
100.3 | |||
| Rental library, net |
188.7 | |||
| Prepaid and other current assets |
84.3 | |||
| Total current assets |
502.4 | |||
| Property and equipment, net |
125.2 | |||
| Deferred income taxes |
77.0 | |||
| Investment in non-debtor subsidiaries |
280.0 | |||
| Intangibles, net |
4.8 | |||
| Restricted cash |
34.3 | |||
| Other assets |
38.0 | |||
| $ | 1,061.7 | |||
| Liabilities and Stockholders’ Equity (Deficit) |
||||
| Current liabilities: |
||||
| Accounts payable |
$ | 145.8 | ||
| Accrued expenses |
194.4 | |||
| Debtor-in-possession loan |
— | |||
| Deferred income taxes |
77.0 | |||
| Total current liabilities |
417.2 | |||
| Other liabilities |
12.1 | |||
| 429.3 | ||||
| Liabilities subject to compromise |
1,174.8 | |||
| 1,604.1 | ||||
| Total stockholders’ equity (deficit) |
(542.4 | ) | ||
| $ | 1,061.7 | |||
FORM MOR-3
Page 6 of 10
| In re | BLOCKBUSTER INC., et al. |
Case No. | 10-14997 | |||||
| Debtor | Reporting Period: | 11/29/2010 - 1/2/2011 |
STATUS OF POST-PETITION TAXES
| Federal |
Beginning Tax | Amount Withheld and/or Accrued |
Amount Paid | Ending Tax | ||||||||||||
| Withholding |
$ | 1,300,922 | $ | 2,692,484 | $ | (3,976,439 | ) | $ | 16,968 | |||||||
| FICA-Employee |
1,170,656 | 2,438,835 | (3,544,302 | ) | 65,188 | |||||||||||
| FICA-Employer |
1,170,656 | 2,438,835 | (3,544,302 | ) | 65,188 | |||||||||||
| Unemployment |
124,630 | 49,900 | (61 | ) | 174,469 | |||||||||||
| Income |
— | |||||||||||||||
| Other: |
||||||||||||||||
| Total Federal Taxes |
3,766,864 | 7,620,054 | (11,065,104 | ) | 321,813 | |||||||||||
| State and Local |
||||||||||||||||
| Withholding |
404,944 | 775,380 | (1,179,442 | ) | 882 | |||||||||||
| Sales |
7,702,666 | 13,705,538 | (12,542,450 | ) | 8,865,754 | |||||||||||
| Excise |
— | — | — | |||||||||||||
| Unemployment |
566,853 | 216,048 | (9,444 | ) | 773,457 | |||||||||||
| Real Property1,2 |
60,398 | 26,194 | (65,261 | ) | 21,331 | |||||||||||
| Personal Property2 |
3,454,023 | 491,393 | (769,838 | ) | 3,175,578 | |||||||||||
| Other: Income/Franchise3 |
1,848,868 | 70,920 | (22,062 | ) | 1,897,726 | |||||||||||
| Total State and Local |
14,037,753 | 15,285,473 | (14,588,497 | ) | 14,734,728 | |||||||||||
| Total Taxes |
$ | 17,804,617 | $ | 22,905,526 | $ | (25,653,602 | ) | $ | 15,056,541 | |||||||
SUMMARY OF UNPAID POST-PETITION DEBTS
| Attach aged listing of accounts payable. | ||||||||||||||||||||||||
| Number of Days Past Due | ||||||||||||||||||||||||
| DESCRIPTION |
Current | 0-30 | 31-60 | 61-90 | Over 91 | Total | ||||||||||||||||||
| AP - Product |
$ | 90,101,062 | $ | 9,218,349 | $ | 3,861,540 | $ | (4,391,300 | ) | $ | (5,881,265 | ) | $ | 92,908,386 | ||||||||||
| AP - Legal & Professional Fees |
3,058,152 | 54,022 | 77,875 | 6,918 | 6,713 | 3,203,679 | ||||||||||||||||||
| AP - Other |
9,509,347 | 28,694,225 | (23,240 | ) | (262,504 | ) | (654,517 | ) | 37,263,310 | |||||||||||||||
| TOTAL POST-PETITION DEBTS4 |
$ | 102,668,561 | $ | 37,966,595 | $ | 3,916,175 | $ | (4,646,886 | ) | $ | (6,529,070 | ) | $ | 133,375,375 | ||||||||||
Explain how and when the Debtor intends to pay any past due post-petition debts.
Past due product amounts pending accomodation agreements. Past due legal amounts pending other requirements.
Other past due amounts reflect normal processing lag time, vendors not submitting invoices in a timely manner and certain contracts under negotiation.
Items delayed by processing lag are normally paid within 60 days.
Past due credits reflect payments in advance and product return credits.
1 - Blockbuster leases the substantial majority of its stores. Accordingly, real property taxes paid pursuant to such lease obligations are not reported herein as such payments are captured within leases payable.
2 - The Real Property and Personal Property taxes are considered “postpetition” based off of when the payment is assessed by the taxing authority.
3 - Although Franchise/Income taxes are “incurred” on an accrual basis, we have included prepetition accruals since the payments for these taxes will be based on the entire year.
4 - Variance to total accounts payable on Balance Sheet is due to pre-petition balances that are not subject to compromise and have been approved for payment by order of the Bankruptcy Court or relate to various accounts payable accrual amounts that are not aged.
5 - Due to the voluminous nature of the request for the Debtors’ listing of aged accounts, a summary has been provided.
6 - Due to the voluminous nature of this request, the Debtors have not included copies of Form 6123 and tax returns filed during this period.
FORM MOR-4
Page 7 of 10
| In re | BLOCKBUSTER INC., et al. |
Case No. | 10-14997 | |||||
| Debtor | Reporting Period: | 11/29/2010 - 1/2/2011 |
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING
| Accounts Receivable Reconciliation |
Amount | |||
| Total Accounts Receivable at the beginning of the reporting period |
$ | 30,059,188 | ||
| Plus: Amounts billed during the period |
11,734,736 | |||
| Less: Amounts collected during the period |
(8,333,825 | ) | ||
| Less: Amounts written off during the period |
(2,167,143 | ) | ||
| Less: Amounts reserved during the period |
(263,399 | ) | ||
| Change in store accounts receivable, net |
4,309,259 | |||
| Total Accounts Receivable at the end of the reporting period |
$ | 35,338,816 | ||
| Accounts Receivable Aging |
11/28/2010 | |||
| 0 – 30 days old |
$ | 16,724,220 | ||
| 31 – 60 days old |
2,316,059 | |||
| 61 – 90 days old |
1,748,026 | |||
| 91 – 120 days old |
1,051,448 | |||
| 121+ days old |
1,013,275 | |||
| Total Aged Accounts Receivable |
22,853,028 | |||
| Store Accounts Receivable1 |
18,754,576 | |||
| Total Accounts Receivable |
41,607,605 | |||
| Less: Bad Debts (Amount considered uncollectible) |
(6,268,789 | ) | ||
| Net Accounts Receivable |
$ | 35,338,816 | ||
1 - All store accounts receivable are less than 90 days.
TAXES RECONCILIATION AND AGING
| Taxes Payable |
Current | 1-30 Days |
31-60 Days |
61-90 Days |
91+ Days |
Total | ||||||||||
| Federal |
$ | 321,813 | $ | 321,813 | ||||||||||||
| State and Local |
14,734,728 | 14,734,728 | ||||||||||||||
| Other |
||||||||||||||||
| Total Taxes Payable |
$ | 15,056,541 | $ | 15,056,541 | ||||||||||||
FORM MOR-5
Page 8 of 10
| In re | BLOCKBUSTER INC., et al. |
Case No. | 10-14997 | |||||
| Debtor | Reporting Period: | 11/29/2010 - 1/2/2011 |
PAYMENTS TO INSIDERS AND PROFESSIONALS
| INSIDERS | ||||||||||||||||
| NAME |
TYPE OF PAYMENT | AMOUNT PAID | TOTAL PAID TO DATE | |||||||||||||
| (1) |
||||||||||||||||
| NONE | ||||||||||||||||
| TOTAL PAYMENTS TO INSIDERS |
||||||||||||||||
| (1) | No payments other than ordinary wages and benefits occurred during the reporting period. |
| PROFESSIONALS | ||||||||||||||||||||
| NAME |
DATE OF COURT ORDER AUTHORIZING PAYMENT |
AMOUNT APPROVED |
AMOUNT PAID 11/29/2010 - 1/2/2011 |
TOTAL PAID TO DATE |
TOTAL INCURRED & UNPAID* |
|||||||||||||||
| SIDLEY AUSTIN LLP (1) |
9/27/2010 | $ | 1,898,582 | $ | 493,675 | $ | 1,230,716 | $ | 667,867 | |||||||||||
| JEFFERIES & COMPANY INC (1) |
9/27/2010 | 469,443 | 125,971 | 469,443 | — | |||||||||||||||
| ALVAREZ & MARSAL NORTH AMERICA LLC (3) |
10/27/2010 | 1,115,954 | 491,517 | 491,517 | 624,437 | |||||||||||||||
| ROTHSCHILD INC (3) |
11/2/2010 | 212,252 | 116,390 | 116,390 | 95,862 | |||||||||||||||
| KURTZMAN CARSON CONSULTANTS LLC (3) |
9/23/2010 | 2,435,818 | 1,261,549 | 1,261,549 | 1,174,269 | |||||||||||||||
| DJM ASSET MANAGEMENT LLC (3) |
11/23/2010 | 150,000 | 150,000 | 150,000 | — | |||||||||||||||
| RETAIL REGROUP INC (3) |
11/23/2010 | 150,000 | 150,000 | 150,000 | — | |||||||||||||||
| DELOITTE TAX LLP (3) |
11/9/2010 | 158,045 | — | — | 158,045 | |||||||||||||||
| SKADDEN ARPS SLATE MEAGHER & FLOM LLP (1) |
9/27/2010 | 170,063 | — | 28,343 | 141,720 | |||||||||||||||
| KORN/FERRY INTERNATIONAL (3) |
11/10/2010 | 131,629 | 112,000 | 112,000 | 19,629 | |||||||||||||||
| COOLEY GODWARD KRONISH LLP (2) |
11/23/2010 | 695,732 | — | — | 695,732 | |||||||||||||||
| FTI CONSULTING (2) |
12/2/2010 | 325,368 | — | — | 325,368 | |||||||||||||||
| BLOODWORTH CARROLL & BANOWSKY PC (3) |
11/23/2010 | 18,000 | — | — | 18,000 | |||||||||||||||
| RAY & GLICK LTD. (3) |
11/23/2010 | 81,000 | — | — | 81,000 | |||||||||||||||
| CHAIKEN LEGAL GROUP PC (3) |
11/23/2010 | 47,000 | — | — | 47,000 | |||||||||||||||
| SHEPPARD MULLIN (1) |
9/27/2010 | 201,507 | — | — | 201,507 | |||||||||||||||
| TOTAL PAYMENTS TO PROFESSIONALS |
$ | 8,260,393 | $ | 2,901,101 | $ | 4,009,958 | $ | 4,250,435 | ||||||||||||
| * | INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED |
| (1) | Fees paid pursuant to the DIP Financing Order for professionals of the DIP lenders and DIP Agent. |
| (2) | Fees for professionals retained to represent Unsecured Creditors’ Committee |
| (3) | Fees for professionals retained to represent Blockbuster Inc. |
POST-PETITION STATUS OF SECURED NOTES, LEASES PAYABLE
AND ADEQUATE PROTECTION PAYMENTS
| NAME OF CREDITOR |
SCHEDULED MONTHLY PAYMENT DUE |
AMOUNT PAID DURING MONTH |
TOTAL UNPAID POST- PETITION |
|||||||||
| DIP Financing*** |
$ | — | $ | 43,253,020 | $ | — | ||||||
| DIP Interest*** |
381,412 | — | ||||||||||
| Leases Payable |
55,125,103 | 28,854,566 | 26,270,537 | |||||||||
| Adequate Assurance Payments - Utilities |
401,066 | 401,066 | — | |||||||||
| Adequate Assurance Payments - Insurance |
600,000 | 600,000 | — | |||||||||
| TOTAL PAYMENTS |
|
$ | 73,490,064 | $ | 26,270,537 | |||||||
| *** | During the period 11/29/2010 to 1/2/2011, Debtor borrowed $20.0 million and repaid $43.2 million. In accordance with the Final Order (I) Authorizing Postpetition Superpriority Secured Financing Pursuant to 11 U.S.C. §§ 105(a), 361, 362, 364(c)(1), 364(c)(2), 364(c)(3), 364(d)(1) and 364(e), (II) Authorizing Postpetition Use of Cash Collateral Pursuant to 11 U.S.C. § 363, and (III) Granting Adequate Protection Pursuant to 11 U.S.C. §§ 361, 362, 363 and 364 [Docket No. 432] (the “DIP Financing Order”), payments are not scheduled on a monthly basis, but are due based on certain covenants in the DIP Financing Order or made at the discretion of the Debtors. |
FORM MOR-6
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| In re | BLOCKBUSTER INC., et al. |
Case No. | 10-14997 | |||||
| Debtor | Reporting Period: | 11/29/2010 - 1/2/2011 |
DEBTOR QUESTIONNAIRE
| Must be completed each month. If the answer to any of the
questions is “Yes”, provide a detailed explanation of each item. Attach |
Yes |
No | ||||
| 1 | Have any assets been sold or transferred outside the normal course of business this reporting period? | X | ||||
| 2 | Have any funds been disbursed from any account other than a debtor in possession account this reporting period? | X | ||||
| 3 | Is the Debtor delinquent in the timely filing of any post-petition tax returns? | X | ||||
| 4 | Are workers compensation, general liability or other necessary insurance coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies? | X | ||||
| 5 | Is the Debtor delinquent in paying any insurance premium payment? | X | ||||
| 6 | Have any payments been made on pre-petition liabilities this reporting period? | X | ||||
| 7 | Are any post petition receivables (accounts, notes or loans) due from related parties? | X | ||||
| 8 | Are any post petition payroll taxes past due? | X | ||||
| 9 | Are any post petition State or Federal income taxes past due? | X | ||||
| 10 | Are any post petition real estate taxes past due? | X | ||||
| 11 | Are any other post petition taxes past due? | X | ||||
| 12 | Have any pre-petition taxes been paid during this reporting period? | X | ||||
| 13 | Are any amounts owed to post petition creditors delinquent? | X | ||||
| 14 | Are any wage payments past due? | X | ||||
| 15 | Have any post petition loans been received by the Debtor from any party? | X | ||||
| 16 | Is the Debtor delinquent in paying any U.S. Trustee fees? | X | ||||
| 17 | Is the Debtor delinquent with any court ordered payments to attorneys or other professionals? | X | ||||
| 18 | Have the owners or shareholders received any compensation outside of the normal course of business? | X | ||||
| 6 | Pre-petition amounts have been paid under respective Court orders. |
| 7 | Subject to the provisions of the DIP Financing Order and agreement with the lenders thereunder, the Debtors are authorized to enter into certain limited ordinary course intercompany transactions with their foreign non-debtor affiliates. During this period, the Debtors have entered into such ordinary course transactions that have resulted in receivables from these foreign non-debtor affiliates. |
| 12 | Pre-petition taxes have been paid under the Final Order Pursuant to 11 U.S.C. §§ 105(a), 363(b), 507(a)(8), and 541 and Fed R. Bank. P.6003 and 6004 Authorizing Debtors to Pay Prepetition Taxes and Assessments [Docket No. 355]. |
| 13 | Other past due amounts reflect normal processing lag time, vendors not submitting invoices in a timely manner and certain contracts under negotiation. Items delayed by processing lag are normally paid within 60 days. |
| 15 | In accordance with the DIP Financing Order, borrowings of $20.0 million and payments of $43.2 million were made during the period 11/29/2010 to 1/2/2011. |
As of January 1, 2011, there was a $0 outstanding balance under the revolving loans.
| 17 | Kurtzman Carson Consultants LLC and Cooley Godward Kronish LLP were not current for the period due to administrative delays in processing of the invoices; the Debtors have made Kurtzman Carson Consultants LLC and Cooley Godward Kronish LLP current as of 2/15/2011. |
FORM MOR-7
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