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Movie Gallery Canada, Inc.

On May 7, 2010, Movie Gallery Canada, Inc. ("Movie Gallery" or the "Company") filed a Notice of Intention to File a Proposal ("NOI") pursuant to Section 50.4 of the Bankruptcy and Insolvency Act ("BIA").  A. Farber & Partners Inc. ("Farber") was appointed Trustee in the Proposal of the Company.

The effect of the NOI is that it provides an initial 30-day stay over all creditors staying all amounts outstanding effective May 7, 2010 (i.e., all amounts outstanding at May 7, 2010 and prior), whilst the Company formulates a Proposal to be presented to its creditors.

Per successive Court Orders dated June 4, July 20, September 1 and October 19, 2010, the filing of the Proposal was extended to November 6, 2010.  Copies of the Orders are attached below.

On November 6, 2010, the Proposal was filed with Farber and a package was mailed to all known creditors on November 16, 2010.  The package contained:

  1. Notice to Creditors of Proposal;
  2. The Proposal;
  3. The Trustee's Report on the Proposal;
  4. The Statement of Affairs of the Company;
  5. Proof of Claim Form; and,
  6. Voting Letter.

The First Meeting of Creditors was held on Friday, November 26, 2010 at 10:00 a.m. at the Metropolitan Hotel, Toronto and was adjourned by ordinary resolution of the creditors in attendance.

The meeting of creditors was scheduled to be reconvened on Wednesday, January 19, 2011 at 10:00 a.m. at the offices of the Proposal Trustee located at 150 York Street, Suite 1600, Toronto, Ontario.  The notice of the adjourned meeting was mailed out to all creditors.  A copy of this package is attached below.

Also, Movie Gallery prepepared a draft 2nd Amended Proposal, which it tabled for consideration by the creditors at the reconvened meeting.  A copy of the draft 2nd Amended Proposal is attached below.

On January 19, 2011, the reconvened meeting of creditors took place.  As a result, the 2nd Amended Proposal was approved by the requisite majority of creditors of Movie Gallery.  A copy of finalized 2nd Amended Proposal is below.  We are now in the process of scheduling a hearing for the 2nd Amended Proposal to be approved by the Court.  Once a hearing date has been set, we will forward a notice to all the creditors who have filed a claim with us regarding the hearing details.  Unless you wish to be heard, it is not incumbent upon you to attend the hearing.

The application for Court approval of Movie Gallery's Second Amended Proposal was made to the Court at 330 University Avenue, Toronto, Ontario, on the 1st day of March 2011 at 10:00 a.m. The Court approved the Second Amended Proposal at that hearing.

Creditors that have not yet filed a proof of claim in the Proposal may still do so until further notice from the Trustee.

For Further Information:

Inquiries about completing the proof of claim form:

Please contact Leslie Lloyd-Key at 416 497-0150 Ext. 3150 or by email at lkey@farberfinancial.com.

General Inquiries:

Please contact Diane Falcione at 416 496-3678 or by email at dfalcione@farberfinancial.com. You may also contact Peter Crawley at 416 496-3507 or by email at pcrawley@farberfinancial.com.

The purpose of this website is to provide documents to any interested persons regarding the Proposal of Movie Gallery.  The documents listed below are in pdf format and can be viewed and/or downloaded.

NOI Documentation

Court Orders

Proposal Documentation

Second Amended Proposal