Movie Gallery agrees to sell MovieBeam assets for $2.25 million

By Caroline Salls

Pittsburgh, May 2 - Movie Gallery, Inc. is seeking court approval of the proposed $2.25 million sale of some of its MovieBeam assets to Dar Capital Ltd., according to a Thursday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

According to the motion, Movie Gallery debtor M.G. Digital, LLC bought substantially all of the assets, technology, network operations and customers of MovieBeam, Inc. in the first quarter of 2007.

Until recently, the Movie Gallery debtors operated the MovieBeam service, which sold set-top boxes to consumers and broadcasted movies for viewing on an on-demand basis.

Movie Gallery discontinued the MovieBeam service nationwide in December and subsequently sold some of the assets and rejected some related executory contracts.

The company also said it began to market the remaining assets covered under the Dar purchase agreement in December.

Dar Capital has made a $250,000 deposit toward the purchase price.

If any objections are filed, a sale hearing will be held on May 8.

Movie Gallery, a Dothan, Ala.-based video rental company, filed for bankruptcy on Oct. 16, 2007. Its Chapter 11 case number is 07-33849.

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