Image, BTP Extend Closing Date — Again29 Nov, 2007 By: Erik Gruenwedel
Ongoing merger negotiations between Image Entertainment and BTP Acquisitions Company LLC remain on track even though the two companies have again extended the closing date, this time from Nov. 28 to Dec. 3.
Chatsworth, Calif.-based Image, in a regulatory filing, said it would entertain further closure delays provided BTP deposited $2 million in trust by Dec. 3.
Last week, Image agreed to extend the closing date from Nov. 15 to Nov. 28 in order to provide investor group BTP additional time to finalize its financing for the $130 million deal.
Film financier and producer David Bergstein spearheads BTP's interest in the deal, 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.
The March announced transaction was originally expected to close Sept. 30 upon shareholder approval.
Image reported a first-quarter (ended Sept. 30) loss of $3.6 million on revenue of $21.6 million.
“The deal is not in jeopardy,” said Image COO David Borshell. “It's just that $130 million acquisitions often take extra time.”
A representative from BTP was not immediately available for comment.