Movie Gallery Creditors Approve Reorganization Plan

Law360, New York (April 7, 2008, 12:00 AM EDT) -- The creditors of Movie Gallery Inc., the nationwide video-rental giant, have strongly endorsed the company's second amended reorganization plan, which anticipates an exit from bankruptcy later this year.

Ninety percent of the roughly 1,500 creditors who voted approved the second amended joint plan of reorganization, filed in the U.S. Bankruptcy Court for the Eastern District of Virgina.

"Through our ongoing restructuring we have positioned Movie Gallery and Hollywood Video as stronger businesses, better equipped for long-term success," said Joe Malugen, president and chief executive officer, in...
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