The term "going concern" is mentioned three times. The $250 million revolving credit facility that the company announced last week is not a done deal.
In the company's own words:
The obligation of the lenders to fund the $250 million revolving credit facility and effectuate such amendments is subject to the satisfaction of certain conditions set forth in the amendment. While we believe that all such conditions will be met and that we will be in a position to close on the amended credit facility on or about May 11, 2009, there can be no assurance regarding these matters.
No shirt, no shoes = no service?
Blockbuster has never been afraid to dream big. It had no problem diving into a price war with Netflix
Even critics should concede that Blockbuster is taking steps to move its model in the right direction. With movie theaters having a record 2009 so far, it bodes well for the DVD release slate in the coming months.
Unfortunately, you can't dream on a Free Parking space in Corporate America.
Blockbuster believes that it will be able to land the required liquidity boost next month, but nervous investors aren't so sure. They bid the stock down by as much as 16% today.
The entertainment retailer's heart is in the right place. Let's hope it can pay the tollbooth in time to keep it beating.
Other Blockbuster headlines:
Longtime Fool contributor Rick Munarriz was an early Blockbuster subscriber, but hasn't been in a store in ages. He owns shares in Netflix. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.