Image Merger: Another Delay, Another $1M15 Jan, 2008 By: Erik Gruenwedel
BTP Acquisition Company LLC is apparently acquiring home entertainment distributor Image Entertainment Inc. in incremental payments of $1 million.
Chatsworth, Calif.-based Image said it would extend from Jan. 14 to Feb. 1 the closing date for the protracted transaction with BTP that is spearheaded by film financier David Bergstein.
The latest extension continues a series of delays regarding the $132 million deal originally announced last March. The deal 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 granting the delay, BTP agreed to deposit $1 million with Image, which last year received $2 million from BTP and deposited in a trust account.
The transaction appeared to be in jeopardy only last month when BTP said it was entertaining acquiring Image shares on the open market rather than pay the pending merger cash share price of $4.68.
Image common shares Jan. 15 fell 5 cents to $3.51 per share in midday trading.
Image in the second quarter (which ended Sept. 30) reported a loss of $3.6 million on revenue of $21.6 million.