Home Media Magazine reports that Mark Wattles has sold more than 1.7 million shares of Blockbuster stock for a grand total of $230,741, or an average price of just a little over $0.13 per share. Blockbuster CEO Jim Keyes sold more than 245,000 shares at a price of $0.18 each, for a total of $44,100. According to the article, he still holds more than 1.8 million shares, which if valued at what Wattles got for his sale, would be worth a bit more than $234,000.
Blockbuster's stock has been delisted by the New York Stock Exchange and its biggest holders are dumping their shares while they still have some value. Even though the company claims to have avoided bankruptcy through a one-month reprieve in debt payments from creditors owed $440 million of the company's $920 million in total debt, Wattles's and Keyes's stock sales indicate that they don't believe that the company will be able to stay out of bankruptcy court. Based on first-quarter earnings, the company is on track to have less than $100 million in earnings this year before interest, taxes, depreciation and amortization--not enough to cover scheduled interest and principal payments on its outstanding debt.