Notice of Non-Compliance with Financial Reporting under DIP Credit Agreement by Movie Gallery, Inc. to The Bank of New York
Movie Gallery, Inc. has notified The Bank of New York, acting as administrative agent under the Debtor In Possession (DIP) Credit Agreement, that it will not be able to deliver its audited financial statements by the required deadline. The company is still working with its auditors to complete the audit for fiscal year 2007. This notice fulfills the company's obligation to inform the agent and lenders of the delay, as required by the agreement.
Exhibit 10.1
April 21, 2008
THE BANK OF NEW YORK, as
Administrative Agent
Asset Solutions Division
600 E. Las Colinas Blvd.
Suite 1300
Irving, TX 75039-5699
Attention: Administrative Agent Portfolio
Manager
Facsimile: (972) ###-###-####
email: ***@***
Ladies and Gentlemen:
Reference is made to that certain Secured Super-Priority Debtor In Possession Credit and Guaranty Agreement, dated as of October 16, 2007 (as has been amended, restated, supplemented or otherwise modified from time to time, the “DIP Credit Agreement”) by and among Movie Gallery, Inc. (the “Company”), the Subsidiaries party thereto, the Lenders party thereto and The Bank of New York, as administrative agent and as collateral agent. Terms used and not otherwise defined herein shall have the meaning set forth in the DIP Credit Agreement.
Pursuant to Section 5.1(g) of the DIP Credit Agreement, this letter serves as notice to the Administrative Agent and the Lenders that the Company will not be able timely to comply with the requirement under Section 5.1(c) of the DIP Credit Agreement to deliver audited financials as of today. The Company continues to work with its auditors to complete the necessary steps for such auditors to complete the audit for fiscal year 2007.
| MOVIE GALLERY, INC. | ||
| By: | /s/ Thomas Johnson | |
| Name: | Thomas Johnson | |
| Title: | Chief Financial Officer | |
| cc: | Haynes and Boone, LLP |
901 Main Street, Suite 3100
Dallas, Texas 75202
Attention: Laurie G. Lang, Esq.
Facsimile: (214) ###-###-####
email: ***@***
