Blockbuster R.I.P? At 5 Cents, Expected to File Chapter 11, Subordinated Notes at $4.0 ($BLOKA, $BBI)

Continued from my post on April 2, "Icahn Dumps Blockbuster In March 13D Filing, $BBI Financial Trends and Senior Subordinated Notes At 20.25", a Chapter 11 bankruptcy filing could be imminent for the company. Blockbuster ($BLOKA, formerly $BBI) is trading at $0.05 on the pink sheets. R.I.P? The subordinated notes are at $4.0 (see chart below) and, according to @credittrader of Credit Derivatives Research, the first liens are at $52. Any Blockbuster credit default swaps outstanding? I didn't see any action on CMA's website. From Reuters:

UPDATE 1-Blockbuster expected to file Chapter 11-source

* Source: Expected to shutter hundreds more stores

* May convert $630 million senior debt into equity

* Junior bondholders may be wiped out

* Shares fall 17.5 pct to less than 7 cts (Adds details in paragraphs 13-17, comments in paragraphs 18-23). [read full article]

$BLOKA, Blockbuster chart courtesy of

Trading at $4.0, 364% Yield

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