Via a press release, Blockbuster has announced a “pre-arranged” bankruptcy in order to “recapitalize” and “substantially reduce its indebtedness.” The Chapter 11 filing will take the embattled company’s debt from roughly $1 billion down to $100 million; the filing is for the company’s U.S. branches only. “Blockbuster franchise locations in both the U.S. and abroad are independently owned, operated and funded, and are also continuing normal business operations,” explained the press release. Unfortunately, if you happen to hold some Blockbuster debt — and are not part of the company’s 11 “3/4 percent senior secured note holders” — you’re going to be out in the cold. “Under the proposed plan, there would be no recovery by the holders of the Company’s outstanding subordinated debt, preferred stock or common stock,” reads the filing. Hit the read link for the full release.