Movie Gallery Inc. said it could emerge from bankruptcy in the second quarter under a reorganization plan it filed last week, the company said Monday.
The second-biggest video rental chain after Blockbuster filed for bankruptcy protection in the U.S. Bankruptcy Court in the Eastern District of Virginia earlier this fall. The company’s leading creditor, Sopris Capital Advisors LLC, endorses the reorganization plan filed on Dec. 22.
The agreement would cancel existing shares of Movie Gallery's common stock, giving significant equity to Sopris.
Once traded at more than $33 a share on NASDAQ, Movie Gallery was subsequently delisted and trades for about 7 cents per share on the Pink Sheets.