Blockbuster can't pay it's late fees for Twilight DVD's

[The Straight Story]

WILMINGTON, Del., Feb 4 (Reuters) - The independent studio behind the hit "Twilight" films wants a judge to force bankrupt movie rental chain Blockbuster Inc to pay its bills or force it to into liquidation, according to court documents.

Blockbuster (BLOAQ.PK) told Summit Distribution LLC that it would not pay $6.8 million it owed for DVDs shipped since it filed for Chapter 11 bankruptcy in September because it did not have the money, according to documents filed with a U.S. bankruptcy court in Manhattan on Thursday.

Blockbuster said in a statement it was reviewing Summit's request.

"We continue to work diligently with the studios, our lender group and other key parties to achieve an outcome in the recapitalization process that is in the best interest of the company's stakeholders, including customers, vendors and employees," Blockbuster said.

Bankruptcy gives companies breathing space to reorganize their debts in part by ensuring suppliers will be among the first paid.

http://www.reuters.com/article/2011/02/04/blockbuster-idUKN0425722220110204

[itsrobert]

1. Karma

However, sad for the employees. However, BB is gutting their retail outlets anyhow leaving automated rental machines in their place.