Movie Gallery shares plunged 42% on Monday, a reaction to a report that the video rental chain was likely to file for Chapter 11 bankruptcy protection under a deal with key creditors. Under the plan, Movie Gallery would convert its bonds to stock and a part of its second-lien debt as well. Movie Gallery had $1.2 billion in debt as of July, including $322 million in bonds, $175 million in second-lien debt and $600 million in first-lien debt. Movie Gallery was Monday's biggest loser on The Hollywood Reporter Showbiz 50 stock index.
TW eyes Martin
Time Warner is expected to name John Martin CFO. The exec currently is CFO at its TW Cable unit. TW has been looking for a replacement for Wayne Pace, whose contract expires at year's end. Martin is a former stock analyst, ran TW's investor relations operation and played a key role in the spinoff of a stake in TWC. A source Monday confirmed the likely appointment, first reported by the New York Post. A TWC spokeswoman declined comment.
Online video advertising startup Podaddies has received more than $1 million in early stage funding led by angel investors the Band of Angels and the Angels Forum. The company said it will use the capital injection to continue its growth, add staff and execute the vision of founder and CEO Nate Pagel. Podaddies is based in San Francisco. Its technology ensures that targeted ads get played, tracked and paid for whenever and wherever the media is consumed.