Dish to Take $46 Million Pre-Tax Write Down on Blockbuster U.K.15 Feb, 2013 By: Erik Gruenwedel
Dish Network Feb. 15 said it will record a $46 million pre-tax write down on bankrupt Blockbuster U.K. to its value as of Dec. 31, 2012, according to a regulatory filing. The satellite TV operator said it would also report a $25 million impairment charge related to the filing.
Dish said intercompany receivables due from Blockbuster U.K. total $37 million as of Dec. 31, 2012.
“We currently believe that we will not receive the entire amount for these intercompany receivables in the administration,” Dish said in the filing.
Blockbuster U.K, which operates about 528 stores employing more than 4,000 people, in January filed for a form of British bankruptcy protection (“administration”) with its operations currently run by a third party (Deloitte) and assets put up for sale.
Deloitte has thus far shuttered 129 Blockbuster stores in the U.K.
Dish acquired Blockbuster Inc. out of bankruptcy in 2011 in a deal that included select foreign assets such as Blockbuster U.K. It now operates Blockbuster LLC as a separate entity in the United States.
Dish reports fiscal results Feb. 20.