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Image Acquisition Delayed to January

10 Dec, 2007 By: Erik Gruenwedel

Closing date for Image Entertainment Inc.'s protracted purchase by BTP Acquisition Co. LLC has been extended to Jan. 14, 2008.

Image Dec. 10 said it received a $2 million deposit from BTP that will be held in trust and credited against the purchase price at closing, according to a regulatory filing.

Chatsworth, Calif.-based Image had said it wouldn't entertain additional delays without receiving a $2 million deposit from BTP.

The latest extension, again due to financing issues, continues a series of delays regarding the $130 million deal originally announced in March.

Film financier and producer David Bergstein spearheads BTP's bid, which includes $95 million in cash, assumption of a $9 million replication advance from Sonopress LLC and the repayment of about $24 million of Image debt.

In addition, Image entered into a multiyear feature film DVD and electronic distribution deal with CT1 Holdings LLC, parent company of ThinkFilm and Capitol Films.

The deal also covers existing film libraries controlled by CT1, which is separately affiliated with Bergstein.

“While it is taking longer to close this transaction than we had anticipated, we firmly believe it is in the best interests of our stockholders to consummate this transaction,” Greenwald said.

Image reported a first-quarter (ended Sept. 30) loss of $3.6 million on revenue of $21.6 million.

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