EmptyPatience pays off for Movie Gallery
Shares of Movie Gallery Inc. surged 36.7% on Tuesday to 41 cents, making the stock by far the top performer on The Hollywood Reporter Showbiz 50 index, which saw more decliners than gainers. Shares were boosted as the company said its lenders agreed to not act yet on recent defaults. Under a revised forbearance agreement, Movie Gallery's lenders will wait until Sept. 30 before taking action. CEO Joe Malugen said the extension gives the company time to act on its long-term restructuring plan while it speeds up store closings and takes other steps to save cash. Movie Gallery has struggled with about $1.1 billion of debt since acquiring larger rival Hollywood Video in 2005.
Jaxtr raises $10 mil in funding
Internet phone company Jaxtr said Tuesday that it has raised $10 million in funding from a group of venture capitalists, many of whom were early investors in Skype, which eventually was sold to eBay Inc. for about $3.6 billion. The funding round was led by new investor August Capital and included Mayfield Fund and Skype investors Draper Richards, Draper Fisher Jurvetson and Mangrove Capital. Jaxtr integrates its service into such popular online destinations as MySpace and Facebook. It is run by CEO Konstantin Guericke, a co-founder of professional networking site LinkedIn.