Image Merger Drama Ends

Image Entertainment Inc. has ended its merger agreement with Nyx Acquisitions Inc. due to a lack of financing. This marks the second time that a sale of the Chatsworth-based producer and distributor of home entertainment programming has fallen through over money issues. Image remains in a position to grow and committed to enhancing shareholder value, said President Jeff Framer. “In this difficult economic environment, we believe the immediate need is to focus our energies on our business,” Framer said. A merger agreement between Image and Nyx was announced in November in which Nyx agreed to buy all outstanding shares in Image at $2.75 per share. By January problems with financing the deal began to appear as Nyx had difficulty coming up with payment of a required business disruption fee. Three times Image alleged Nyx breached the agreement over non-payment of the fee. The termination followed Nyx failing to pay an additional $1 million to Image as agreed to in an amended agreement. Nyx is an affiliate of San Francisco-based Q-Black LLC. Mark R. Madler