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Summit Entertainment Wants $9.5m or Liquidated Assets from Blockbuster

February 7, 2011  |  1:35pm
Summit Entertainment Wants $9.5m or Liquidated Assets from Blockbuster

The production company Summit Entertainment wants the rental chain Blockbuster to either pay $9.5 million or liquidate its assets, reports TheWrap.com.

Summit claims Blockbuster still owes money for copies of Blu-Ray and traditional DVDs of RED and The Twilight Saga: Eclipse. Blockbuster ordered them before it filed for Chapter 11 bankruptcy last fall.

Blockbuster was nearly $1 billion in debt for much of last year and is now looking to close around 3,000 of its stores. It has acquired $175 from Carl Icahn and other investors to help ease it through bankruptcy.

However, those loans haven’t helped Blockbuster pay off all its debts. “To Summit’s surprise and dismay, the debtors informed Summit that the debtors would not pay Summit with respect to products that were shipped post-petition because the debtors lacked the funds to do so,” the claim reads.

Neither Summit nor Blockbuster responded to TheWrap’s queries.

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