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Nyx Seeks Image Merger Extension

3 Apr, 2009 By: Erik Gruenwedel

Image Entertainment

Image Entertainment April 2 said the April 6 closing date of its $100 million purchase by Nyx Acquisitions has tentatively been extended to April 20 at the request of San Francisco-based Nyx.

Chatsworth, Calif.-based Image said it would agree to the extension provided Nyx paid an additional $1.5 million into the business interruption fee account, which the affiliate of Q-Black LLC has agreed to do so by end of the business on April 6.

Nyx has already paid $2.5 million into the business interruption account, from which Image has drawn $1 million when it agreed to extend the previous merger close date from March 23 to April 6.

Image shareholders in February formally approved the acquisition, which called for Nyx to pay $2.75 per share in cash ($60.2 million), in addition to assuming all outstanding debt, for a total purchase price of $100 million.

The news sent Image shares down nearly 11% to $1.14 per share in midday trading. Analysts remain concerned that Nyx can find the funding in the current credit market to close the deal.

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