Movie Gallery emerges from bankruptcy

DOTHAN, Ala. Movie Gallery announced that it has successfully emerged from Chapter 11 bankruptcy protection. Movie Gallery's restructuring plan was confirmed by the United States Bankruptcy Court for the Eastern District of Virginia, Richmond Division on April 9. Movie Gallery also closed its $100 million exit financing facility.

"This is a great day for Movie Gallery and all of our customers, employees and business partners," said Joe Malugen, chairman, president and ceo of Movie Gallery. "Through this restructuring we have effectively addressed our financial and operational challenges and laid a strong foundation for the future success of Movie Gallery. The company now has a stronger balance sheet, cash to fund operations and a streamlined store portfolio that will allow us to compete successfully in our industry. The rapid and successful restructuring of Movie Gallery is a testament to our outstanding partners and associates, and we appreciate their hard work and dedication throughout this process."