Studio behind the popular Twilight movies says Blockbuster can’t pay its bills
The independent studio that produces the popular Twilight series said Thursday in a court filing that Blockbuster Inc. is a week late on its initial $1.6 million payment for $9.5 million worth of DVDs.
Summit Distribution LLC filed a motion asking that the Dallas-based movie rental chain’s Chapter 11 reorganization be converted to a Chapter 7 liquidation.
Blockbuster filed for bankruptcy last September under a prearranged agreement with its senior secured lenders.
Summit said Blockbuster received routine 60-day credit terms for copies of Summit’s second-biggest title last year, The Twilight Saga: Eclipse, and other movies.
Summit said it was assured that studios would be paid post-petition bills because new movie releases are the chain’s livelihood. In the filing, Summit said that Blockbuster said it couldn’t pay “because it lacks funds to do so.”
Blockbuster hasn’t yet filed its December results. November results fell below expectations. As of Nov. 28, Blockbuster said it had $61 million in cash. It has received extensions as its lenders try to agree to a business plan for Blockbuster’s bankruptcy exit.
Reports from Memphis, Tenn., said all the remaining Blockbuster stores there are closing this week. More Dallas stores also closed this week.
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