Movie Gallery reports reorganization plans

DOTHAN, Ala. Movie Gallery has announced that it has filed a joint plan of reorganization along with the United States Bankruptcy Court for the Eastern District of Virginia, Richmond division.

Movie Gallery said it expects that it will ask the Bankruptcy Court to confirm the plan early in the second quarter of 2008, and hopes to emerge from bankruptcy shortly thereafter.

"The filing of our plan is a significant step towards emerging from Chapter 11 as a stronger, more competitive company," said Joe Malugen, chairman, president and ceo of Movie Gallery. "We have made substantial progress in addressing our operational and financial challenges and we are confident that the company will be well-positioned to operate profitably and create value for all of its stakeholders upon emergence."