Entries tagged "Movie Gallery"
Movie Gallery Inc. on May 20 emerged from bankruptcy protection a month after its reorganization was approved and little more than two years after its ill-fated deal for rival Hollywood Entertainment Corp. The company emerged majority owned by second-lien debtholder Sopris Capital Advisors LLC, which will contribute up to $150 million in exit financing. It's a model, according to Soapbox contributors, that could serve as a template for other such plans going forward. ...
Here are some of the latest bankruptcy stories our reporters have been covering Friday morning on TheDeal.com. For more bankruptcy coverage, check out the bankruptcy channel on TheDeal.com or visit Bankruptcy Insider. Sharper Image set for auctionA joint venture of Hilco Consumer Capital LLC and GB Brands LLC will front a $51.25 million stalking-horse bid for Sharper Image Corp.'s assets. The sale's auction is scheduled for May 28. The bidders are affiliated with Hilco Merchant Resources LLC and Gordon Brothers Retail Partners LLC, which in March began liquidating 96 of Sharper Image's 184 stores. - John Blakeley RedEnvelope wins DIPRedEnvelope...
Standard & Poor's managing director, Steven Miller and Abby Latour, an associate for S&P's Leveraged Commentary and Data discuss Movie Gallery's bankruptcy reorganization plan as a possible precedent for future hedge fund loaning strategies. With default rates climbing, hedge funds may finally have opportunities to execute the long-discussed loan-to-own strategies. If so, Movie Gallery Inc.'s recently approved bankruptcy reorganization plan provides an early template. Under the plan, Sopris Capital Advisors LLC will receive 64% to 75% of Movie Gallery on emergence. The disclosure statement gives a summary of the mechanics, which is based on $233 million of immediate post-emergence equity...
