�The Twilight Saga: Chapter 7?�
The distributor of the vampire films in �The Twilight Saga� said Blockbuster Inc. hasn�t been paying for its copies of the series� latest installment. The independent studio, Summit Distribution, has a solution: Pay now, or convert your case from a Chapter 11 reorganization into a Chapter 7 liquidation �so that a trustee may ensure that all creditors are treated fairly and consistently.�
In a Thursday court filing with the Manhattan bankruptcy court, Summit said it shipped �The Twilight Saga: Eclipse� to Blockbuster with a 60-day credit agreement in place, and that the movie rental giant missed its first $1.6 million payment last week. Blockbuster then told Summit not to expect money for any films shipped after its September 2010 bankruptcy filing because the company doesn�t have enough cash.
Summit said it�s surprised because based on Blockbuster�s debtor-in-possession loan terms and a November agreement between Summit and Blockbuster, Summit said it �had every reason to believe that it would be paid for postpetition shipments.� The company said it�s eventually going to be owed $9.5 million, �a very significant amount for an independent film distributor.�
Blockbuster will receive more than $8.3 million from renting �Eclipse� to bloodthirsty customers, Summit estimated, which is about $8.3 million more than Summit itself is getting.
Blockbuster tells Bankruptcy Beat it�s reviewing the motion and that it continues to work with studios, its lender group and other key parties to find its way through the bankruptcy process.
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