Nyx Fails to Notify Image Entertainment of Extension to Merger Closing Date

By : Chris Tribbey | Posted: 17 Apr 2009
ctribbey@questex.com

Nyx Acquisitions Inc., an affiliate of Q-Black LLC in San Francisco, has not informed Image Entertainment of its intent to extend the closing date of its acquisition of the company from April 20 to May 4, Image reported April 17.

On April 15 the Chatsworth, Calif.-based packaged media company agreed to a fourth amendment to its merger agreement (which Image shareholders agreed to in February) Under the merger agreement, Nyx agreed to pay $2.75 per share in cash ($60.2 million) and to assume all outstanding debt, for a total purchasing price of $100 million.

Nyx had the option of extending the closing of the acquisition from April 20 to May 4, provided it asked to do so by April 16, and that it paid a $3 million business interruption fee. Image said April 17 that Nyx had “not provided any confirmation or assurance that the closing will occur Monday.”

Nyx must also pay a $1 million business interruption fee by noon PST today. Image said it would update its shareholders on the status of that payment