Movie Gallery (MOVI) Holder Schultze Seeks Meeting With Board on Shareholder Value-Enhancing Steps

In an amended 13D filing this afternoon on Movie Gallery Inc. (Nasdaq: MOVI) 14.4% holder Schultze Asset Management said they intend to contact management and/or the board of directors of the Company to propose a number of possible shareholder value-enhancing steps.

The firm said such steps may include, but are not limited to, a shareholder rights offering to raise funds from existing shareholders. The possible shareholder rights offering may serve to raise capital from existing shareholders in an effort to reduce bank and/or bond debt so that future interest expense may be lowered and/or to raise cash for general corporate purposes.

Shares of Movie Gallery are 10% higher mid-day.

Schultze Asset Opposes MAIR HOLDINGS (MAIR) Acquisition Plans, Wants Big Sky Subsidiary Sold

In a 13D filing on MAIR HOLDINGS (Nasdaq: MAIR), Schultze Asset Management disclosed a 5.9% stake in the company and said they are disappointed that the Company may be planning to pursue acquisitions that may be outside of the airline industry using shareholders' cash. The firm believes the board's and Company's best course of action would be to distribute any and all cash remaining after the reorganization transaction to shareholders as soon as possible in a tax-efficient manner.

Separately, the firm believes that the Company should initiate efforts to sell its Big Sky subsidiary as soon as possible by retaining a nationally recognized investment bank to do so.

The firm believes that the shares are substantially undervalued based on the amount of cash that would be distributed to shareholders in the event the board implements its suggestions.

The firm said it may make proposals to the board, seek to change the composition of, or seek representation on, the board, all with the underlying purpose of increasing shareholder value. In addition, the Reporting Persons may acquire additional shares (i) for investment purposes, (ii) to change or influence the control of the Company, and/or (iii) with a view toward a possible acquisition of the Company.