Judge OKs Movie Gallery, Studios Deal

Law360, New York (October 19, 2007, 12:00 AM EDT) -- A bankruptcy court judge on Friday gave Movie Gallery Inc. the go-ahead to repay movie studio creditors so that it can negotiate new supply contracts with them, allowing it to stay afloat as it reorganizes under Chapter 11.

In his interim order, Judge Douglas Tice Jr. said the requested relief was "in the best interests of the debtors’ estates, their creditors and other parties in interest.”

Movie Gallery had asked for leave to make the payments and negotiate contracts in a motion on Tuesday, the same...
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