SEC temporarily suspends trading in securities of former Blockbuster

By Jim Witters

Wilmington, Del., Sept. 29 - The Securities and Exchange Commission announced Thursday it has temporarily suspended trading in the securities of BB Liquidation Inc., formerly known as Blockbuster Inc.

The suspension began at 9:30 a.m. ET on Wednesday and ends at 11:59 p.m. ET on Oct. 12.

In announcing the suspension of trading, the SEC stated that there is "a lack of current and accurate information concerning the company's securities due to assertions in third-party press releases to investors concerning, among other things, the company's current financial condition and business prospects."

On Wednesday, BB Liquidation announced that as a result of the April sale of Blockbuster Inc. to Dish Network Corp., BB Liquidation has "no further business operations or assets to liquidate." The company stated that there would be "no value for the common shareholders in the bankruptcy liquidation process, even under the most optimistic of scenarios."

The SEC also cited in its announcement BB Liquidation's July form 10-K, which stated the bankruptcy trustee was "winding up the company's business." It also stated that the trustee expected to convert the bankruptcy case to Chapter 7 liquidation, at which point its "corporate existence will be terminated" and its "shares of common and preferred stock will be canceled."

The SEC cautioned brokers, dealers, shareholders, and prospective purchasers to consider all available information about BB Liquidation. The SEC said they should be alert to the fact that at the termination of trading no quotation may be entered unless the brokers and dealers have complied with all provisions of Rule 15c2-11.

Blockbuster is a Dallas-based provider of in-home movies and game entertainment. The company filed for bankruptcy on Sept. 23, 2010. Its Chapter 11 case number is 10-14997.

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