UPDATE 1-Blockbuster mkt capitalization below NYSE minimum

* Chain’s market capitalization falls below NYSE minimum

* Blockbuster has 45 days to submit NYSE compliance plan

* Shareholders to vote on reverse stock split

* Shares close down nearly 10 percent

LOS ANGELES, March 29 (Reuters) - Blockbuster Inc BBI.N said on Monday it is not in compliance with a New York Stock Exchange rule requiring listed companies to have a global market capitalization of $75 million over a 30-day trading period.

Earlier this month, the movie rental chain said it might need to file for bankruptcy protection after years of struggling to lower its debt load. [ID:nNN1611187]

Blockbuster shares closed down 9.8 percent at 28 cents on Monday. Shares in the company, which competes with Netflix Inc NFLX.O, peaked at just over $29 in 2002.

Under NYSE rules, Blockbuster has 45 calendar days to submit a plan to get back into compliance within 18 months.

“We intend to promptly submit a plan to the NYSE, which will outline the proactive steps we plan to take to remedy the company’s noncompliance by September of 2011,” Jim Keyes, Blockbuster’s chairman and chief executive said in a statement.

At its annual shareholder meeting on May 26, investors will decide whether to combine Blockbuster’s Class A and Class B common stock into a single class and execute a reverse stock split.

Blockbuster also said that director and CEO Robert Bowman will not stand for reelection at the meeting.

Bowman serves as a director on several boards and cited other commitments as the reason for his decision to not stand for reelection, the company said. (Reporting by Lisa Baertlein)