NEW YORK (Standard&Poor's) Jan. 25, 2011--Standard&Poor's Ratings Services said today that it withdrew all its ratings on Blockbuster Inc. The company filed for Chapter 11 bankruptcy protection on Sept. 23, 2010. The reorganization is taking longer and will likely be more costly than originally expected. Recently, the company asked the secured bondholders for an additional $200 million-$250 million to fund its exit from bankruptcy. We believe that whether the company reorganizes or is sold, that the secured noteholders (about $630 million outstanding) will receive meaningful (50%-70%) recovery and the subordinated noteholders (about $300 million outstanding) will receive negligible (0%-10%) recovery. The recovery for the secured noteholders could decline during bankruptcy if: The value of the company's
