The rental giant, struggling to contain losses as alternate movie venues flourish, said low voter turnout at last week's shareholder meeting left it short on votes to merge class A and B shares and undertake a reverse stock split, The Dallas Morning News reported Friday.
The NYSE said it would stop Blockbuster shares from trading Thursday and take it off the exchange July 7.
The exchange has a minimum share price of $1 per share, which Blockbuster has not achieved since October.
The company has said it could file for bankruptcy but creditors this week extended a deadline for a $42.4 million interest payment on secured debt that will buy the company some time to consider other options.
Chief Executive Officer James Keyes has said he is looking for ways to avoid a bankruptcy filing, the newspaper said.
"We currently expect any recapitalization to significantly reduce our debt and increase our financial flexibility," he said in a statement.
One analyst said the writing is on the wall for Blockbuster, despite plans to close 2,415 rental outlets this summer.
"It's a foregone conclusion that Blockbuster is never going to repay this debt. What debt-holders have to decide is whether keeping the company going will net them more money than if they liquidate it," Michael Pachter at Wedbush Morgan Securities said.
Copyright 2010 United Press International, Inc. (UPI).
Give Blockbuster time?
Give Blockbuster time? Blockbuster is already out of time! The delisting is the ultimate beginning of the end for the company and anyone that attempts to save Blockbuster at this point has their head in the wrong place.
Mr. Keyes, who was reelected solely because no one else wants to bear the burden, refuses to say the truth, in plain English, that Blockbuster cannot win and will close forever shortly. Don't even go to Chapter 11, stop at Chapter 7. Mr. Keyes, having worked for 7-Eleven, ought to conclude that 7 comes first.
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