87.5 F
San Fernando
Monday, Apr 15, 2024

Image Merger Breached Again

For the third time, Image Entertainment Inc. has alleged a breach in its merger agreement with Nyx Acquisitions Inc. The Chatsworth-based distributor and producer of home entertainment programming failed to receive a $500,000 fee from Nyx by a March 19 deadline to extend the deadline to close the deal. The board of directors for Image was scheduled to meet March 20 to decide their next step. Nyx, an affiliate of San Francisco-based new media and global investment group Q-Black LLC, agreed in November to buy all outstanding shares in Image at $2.75 per share. Financial issues have plagued the merger since January, when Nyx was late with a $1.3 million business disruption fee and then again in March when the company failed to pay an additional $200,000. Both times Image declared Nyx to be in breach of the merger agreement. Shares in Image closed down at $1.10. Mark R. Madler

Featured Articles

Related Articles