Another Step Toward Ch. 11 Exit For Movie Gallery

Law360, New York (February 5, 2008, 12:00 AM EST) -- Movie Gallery Inc. won approval of its disclosure statement Tuesday, clearing the way for the company, which bills itself as North America's second-largest video-rental outfit, to start soliciting support for its restructuring plan.

Following a hearing, Judge Douglas O. Tice of the U.S. Bankruptcy Court for the Eastern District of Virginia signed off on an order approving the disclosure statement to Movie Gallery's first amended joint reorganization plan, holding that the statement complied with the Bankruptcy Code and contained adequate information.

The order also establishes March...
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