Video giant Blockbuster announced that it has restructured about two thirds of a $250 million credit facility, and reported a Q4 profit (before charges), reassuring investors who had trashed the stock after the company hired a company that frequently advises companies going into bankruptcy (see “Blockbuster Hires Bankruptcy Advisors”).  While it will still have to renegotiate the remainder of $300 million in debt that comes due in August, and its auditors will likely issue a “going concern” opinion (indicating that the company may not survive), the company seems much more likely to make it without filing for bankruptcy than it did just a few weeks ago. 

Blockbuster made $80 million before a $435 million good will impairment charge in Q4.  Same store sales actually were up 4% for the year, primarily due to increased sales of consumer electronics and videogames.  Video rentals were down 2.6%. 

CEO Jim Keyes says that the company will undertake $200 million in cost cuts and reduce investment in its digital delivery business to weather what it expects to be another difficult year.