re: Blockbuster Documentary Netflix

quote:

---

It really does come down to them getting fricked by Paramount shifting all their debt to them and then happening to use Lehman Bros as their creditor. Had they been with a bank that survived like JP Morgan they are probably still around.

---

It’s really due to Paramount over leveraging the business.

It’s highly doubtful that Lehman was their only bank. Huge companies have syndicated debt facilities including dozens of banks. The crisis just made people tighten up their underwriting and no one was likely willing to throw more debt on their books.

Edit: Since I’m a nerdy banker, I looked up their old SEC filings. Blaming Lehman is a cop out. They were able to refinance their debt in 2009, which was post Lehman bankruptcy.

In 2009 they sold $675 million in new bonds and got commitments for a new $250 million line of credit. Granted that was a reduction from their previous $500 million line of credit.

Viacom also saddled them with $300 million in expensive 2nd lien debt.

Banks involved included: JPM. Citi, Wachovia (Wells), US Bank and others. Wilmington Trust also became involved when they needed $125 million in rescue financing later on.

quote:

---

I eventually got Roger Clemens baseball with a bunch of fake names that were very close to the real names...Lavine instead of Glavine, Judge instead of Justice, and Johns instead of Smoltz. Good times

---

I don’t remember that game but that is hilarious.