Movie Gallery to file for Chap. 11 protection: report

NEW YORK (Reuters) - Video rental company Movie Gallery MOVI.O is expected to file for Chapter 11 bankruptcy protection under a deal with key creditors that will allow it to convert its bonds into stock, the Wall Street Journal reported on Friday.

Citing people familiar with the matter, the Journal said Movie Gallery would likely file for bankruptcy protection this month with the hope of emerging from Chapter 11 early next year.

Company representatives were not immediately available for comment.

(Reporting by Michele Gershberg)