Image, Nyx Still Discussing Merger

Image Entertainment Inc. continues negotiations with Nyx Acquisition Inc. on a merger between the two companies. Image alleged on March 20 a breach in the merger agreement after Nyx failed to pay an agreed upon fee. It was the third time Image claimed there was a breach. A representative of Nyx assured Image executives that the company can close the merger within coming weeks and will pay the balance of the business disruption fee to a trust account. Mark R. Madler