SEC Trading Suspension of BB Liquidation Inc. (formerly Blockbuster Inc.)
INFORMATION FOR INVESTORS
The Securities and Exchange Commission announced the temporary suspension, pursuant to Section 12(k) of the Securities Exchange Act of 1934, of trading in the securities of BB Liquidation Inc., formerly known as Blockbuster Inc., commencing at 9:30 a.m. EDT, September 29, 2011, and terminating at 11:59 p.m. EDT, on October 12, 2011.
The Commission temporarily suspended trading in the securities of BB Liquidation because 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. This order was entered pursuant to Section 12(k) of the Exchange Act.
BB Liquidation filed for bankruptcy protection on September 23, 2010.
On May 2, 2011, Dish Network Corporation (“Dish”) announced that it had completed the purchase of the assets of Blockbuster the previous week, with Blockbuster L.L.C., a newly formed entity, becoming a wholly owned subsidiary of Dish.
On September 28, 2011, BB Liquidation announced that as a result of the asset sale to Dish, BB Liquidation has “no further business operations nor assets to liquidate,” and there will be “no value for the common shareholders in the bankruptcy liquidation process, even under the most optimistic of scenarios.” This followed BB Liquidation’s prior disclosure in its Form 10-K filed on July 12, 2011 that the bankruptcy trustee was “winding up the Company’s business” and the trustee expected to convert the bankruptcy case to a Chapter 7 liquidation, at which point its “corporate existence will be terminated” and its “shares of common and preferred stock will be cancelled.”
The Commission cautions brokers, dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.
Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not he has complied with the rule, he should not enter any quotation but immediately contact the staff in the Division of Trading and Markets, Office of Interpretation and Guidance, at (202) 551-5777. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he should refrain from entering quotations relating to BB Liquidation’s securities until such time as he has familiarized himself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action.