By : Erik Gruenwedel | Posted: 17 Nov 2009
egruenwedel@questex.com

Image Entertainment successfully delayed until Dec. 11 payment of $4 million in interest on a $15 million bond due Aug. 11, 2011.

Chatsworth, Calif.-based Image last week warned it might default on the interest payment — originally due Nov. 15 — unless it could get an extension.

The distributor Nov. 15 entered into a second amendment agreement with the holder of its 8.875% senior convertible note that also allows it to delay interest payment through Jan. 30, 2010, should Image enter into a formal acquisition agreement with a third party.

A senior convertible note has priority over all other debt securities issued, including investor shares.

In exchange for the revised payment date, Image agreed to pay the bondholder $150,000 for legal and related consulting fees.

Separately, Image expanded the duties of David Rand, SVP of sales, to include overseeing rental, distribution, mass merchants and online sales. Rand, who held executive positions with Lionsgate and ThinkFilm before joining Image in 2007, also will have several new fiscal duties, in addition to working closely with the acquisition and marketing departments.

Image posted a $1.6 million loss in the most recent quarter despite reporting a 150% increase in Blu-ray Disc sales to $2.5 million.

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