DOTHAN, Ala. (AP) - Dothan-based Movie Gallery said today that some of its lenders have agreed to accept a delayed debt payment so long as the nation's second-largest movie and video game rental company doesn't miss any more payments.
Movie Gallery said last month it could not meet debt obligations because of much weaker-than-expected second-quarter results. The company then signed what is known as a forbearance agreement with senior lenders.
The deadline in that agreement has now been extended until August 27th.
Movie Gallery also said in July it was considering various options, including a possible sale of the company.
It has struggled with debt since buying rival Hollywood Entertainment for $1 billion in 2005. CEO Joe Malugen said the company plans to operate without interruption.
(Copyright 2007 by The Associated Press. All Rights Reserved.)
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