The firm had 600 stores when it filed for protection from creditors last September. Since then, about 250 stores have closed, according to company officials. Video Update now has about 350 stores, most in the Upper Midwest, Northwest, Southeast and Canada. The plan also provides for a restructuring of Video Update's senior secured debt, of which South Carolina-based Movie Gallery holds 92%. It also establishes an unspecified cash payment for the satisfaction and release of all general unsecured claims. Movie Gallery also will provide Video Update with working capital financing following the plan's confirmation. On Sept. 11, the Delaware Bankruptcy Court will take testimony on the plan.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.