Gallery Finds Wall Street Friends22 Aug, 2007 By: Erik Gruenwedel
Financially troubled Movie Gallery said it has agreed to offer “certain subsidiaries” as collateral to Goldman Sachs Credit Partners L.P. and CapitalSource Finance LLC in exchange for their payment of 100% of the interest due on the principal amount of outstanding loans during the next interest period.
Earlier this week, Dothan, Ala.-based Gallery received two notices from Nasdaq stating it was not in compliance with filing requirements.
Last week, Gallery extended to Aug. 27 its forbearance agreement with senior lenders. Failure to do so could have resulted in default and subsequent foreclosure proceedings.