“The Twilight Saga: Chapter 7?”
The distributor of the vampire films in “The Twilight Saga” said Blockbuster Inc. hasn’t been paying for its copies of the series’ latest installment. The independent studio, Summit Distribution, has a solution: Pay now, or convert your case from a Chapter 11 reorganization into a Chapter 7 liquidation “so that a trustee may ensure that all creditors are treated fairly and consistently.”
In a Thursday court filing with the Manhattan bankruptcy court, Summit said it shipped “The Twilight Saga: Eclipse” to Blockbuster with a 60-day credit agreement in place, and that the movie rental giant missed its first $1.6 million payment last week. Blockbuster then told Summit not to expect money for any films shipped after its September 2010 bankruptcy filing because the company doesn’t have enough cash.
Summit said it’s surprised because based on Blockbuster’s debtor-in-possession loan terms and a November agreement between Summit and Blockbuster, Summit said it “had every reason to believe that it would be paid for postpetition shipments.” The company said it’s eventually going to be owed $9.5 million, “a very significant amount for an independent film distributor.”
Blockbuster will receive more than $8.3 million from renting “Eclipse” to bloodthirsty customers, Summit estimated, which is about $8.3 million more than Summit itself is getting.
Blockbuster tells Bankruptcy Beat it’s reviewing the motion and that it continues to work with studios, its lender group and other key parties to find its way through the bankruptcy process.
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