Comments on: Movie Gallery’s Improbable Sequel http://davisfreeberg.com/2006/12/07/movie-gallerys-improbable-sequel/ Wed, 31 Aug 2011 01:39:44 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: davis http://davisfreeberg.com/2006/12/07/movie-gallerys-improbable-sequel/comment-page-1/#comment-82037 davis Thu, 23 Aug 2007 20:21:20 +0000 http://davisfreeberg.com/2006/12/07/movie-gallerys-improbable-sequel/#comment-82037 Hi Troy - Perhaps, I didn't explain this number very well in this post, but if you go back and do the math, I think you'll see that it adds up. I'm not sure exactly what it said on MOVI's balance sheet when I first published this article, but today, they have $1.1 billion in assets on the books, but they have $1.3 billion in debt. Had the debt holders converted into equity, (instead of voting the initiative down last May) then MOVI would have wiped out all of the debt and would be left with $1.1 billion (now) in assets . Hopefully, this helps to clarify the post. Hi Troy – Perhaps, I didn’t explain this number very well in this post, but if you go back and do the math, I think you’ll see that it adds up. I’m not sure exactly what it said on MOVI’s balance sheet when I first published this article, but today, they have $1.1 billion in assets on the books, but they have $1.3 billion in debt.

Had the debt holders converted into equity, (instead of voting the initiative down last May) then MOVI would have wiped out all of the debt and would be left with $1.1 billion (now) in assets . Hopefully, this helps to clarify the post.

]]> By: Troy Owens http://davisfreeberg.com/2006/12/07/movie-gallerys-improbable-sequel/comment-page-1/#comment-82034 Troy Owens Thu, 23 Aug 2007 19:54:33 +0000 http://davisfreeberg.com/2006/12/07/movie-gallerys-improbable-sequel/#comment-82034 How can you say that MG has 1.2 Billion dollars in assets? What do they own other than racks and DVDs that depreciate faster than a speeding bullet? How can you say that MG has 1.2 Billion dollars in assets? What do they own other than racks and DVDs that depreciate faster than a speeding bullet?

]]> By: Davis Freeberg’s Digital Connection - Movie Gallery Negotiates Sequel - Will Restructure Debt http://davisfreeberg.com/2006/12/07/movie-gallerys-improbable-sequel/comment-page-1/#comment-20031 Davis Freeberg’s Digital Connection - Movie Gallery Negotiates Sequel - Will Restructure Debt Tue, 06 Feb 2007 18:20:05 +0000 http://davisfreeberg.com/2006/12/07/movie-gallerys-improbable-sequel/#comment-20031 [...] Without knowing the terms of the restructured debt, it’s too early to say if this financial engineering will actually turn out to be a home run for Movie Gallery, but undoubtably it will be welcome relief for shareholders who had been faced with the prospect of losing their equity through a bankruptcy filing or losing most of their equity in a massive dillutive underwriting. Even after the restructuring, Movie Gallery will still have many challenges to overcome, but with the new credit facility in place, it will give Movie Gallery five more years to focus on cutting costs and closing unprofitable stores, as the company fights to get back on track. [...] [...] Without knowing the terms of the restructured debt, it’s too early to say if this financial engineering will actually turn out to be a home run for Movie Gallery, but undoubtably it will be welcome relief for shareholders who had been faced with the prospect of losing their equity through a bankruptcy filing or losing most of their equity in a massive dillutive underwriting. Even after the restructuring, Movie Gallery will still have many challenges to overcome, but with the new credit facility in place, it will give Movie Gallery five more years to focus on cutting costs and closing unprofitable stores, as the company fights to get back on track. [...]

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