Trading in Blockbuster (BBI) shares has been halted for news.
Yesterday, the company disclosed in an 8-K filing that a previous announcement indicating that holders had approved a measure to combine its Class A and Class B shares into a single share class, and another to authorize a reverse stock split, was incorrect. The video rental retailer now says that both measures, while winning strong support from holders who voted, failed to receive the support of a majority of the shares outstanding, and so were not approved.
Meanwhile, as the Dallas Morning News notes, Blockbuster has $42 million in debt payments due today.
Before the halt, BBI was down a penny at 23 cents.
Update: Asked about the continuing halt, which has now been dragging on for hours, a spokesperson for the company this afternoon said that “Blockbuster will issue a release shortly that should help answer your questions.”
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