Great news for today! It may push the price to 0.05 ~ 0.1 soon...
Movie Gallery filed an Amended Joint Plan of Liquidation and Disclosure Statement with the U.S. Bankruptcy Court. According to the Disclosure Statement, "The Plan is a liquidating Plan. Pursuant to prior orders of the Bankruptcy Court, the Debtors have terminated their remaining business operations and have liquidated or are in the process of liquidating their remaining assets. The Plan provides for the continuation and completion of that liquidation process, and also provides some recovery for holders of unsecured claims against the Debtors, even though the claims of most of the Debtors' pre-petition secured creditors will not be paid in full. Based on the foregoing, the Plan has the support of the Committee….the Plan also provides for the payment in full of the Revolver Secured Claims (including the payment of the Revolver Effective Date Cash on the Effective Date), for the payment in full to holders of allowed administrative claims and allowed priority claims, and for the creation and the funding of the First Lien Term Lenders Liquidating Trust for the primary benefit of the Debtors' first lien secured creditors, and the funding of the GUC Liquidating Trust for the benefit of the Debtors' unsecured creditors (each of the First Lien Term Lenders Liquidating Trust and the GUC Liquidating Trust being a 'Liquidating Trust' and collectively being the 'Liquidating Trusts.')….The GUC Liquidating Trust will be funded with $5 million of cash on the Effective Date. The First Lien Term Lenders Liquidating Trust will receive all other assets, consisting primarily (but not necessarily exclusively) of causes of action, refund rights, cash, certain inventory located in the Debtors' sole remaining distribution center, miscellaneous real estate, intellectual property and all of the Debtors right, title, and interests (as a secured creditor, equity-holder, and otherwise) in Movie Gallery Canada, Inc. ('MG Canada'). To the extent provided in the Plan, the first lien secured creditors are not asserting any deficiency claim against the GUC Liquidating Trust on account of their first lien secured claims. The Plan further provides for the termination of all Interests in the Debtors, the substantive consolidation of the Debtors, the dissolution and wind-up of the affairs of the Debtors, the implementation of the GUC Liquidating Trust, the implementation of the First Lien Term Lenders Liquidating Trust and distributions from the respective Liquidating Trusts to the respective beneficiaries thereof as further provided in and subject to the Plan."
