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Friday, Apr 19, 2024

Image Nixes Merger with Nyx Acquisition

Image Entertainment Inc. has ended its planned merger with Nyx Acquisition after not receiving a business interruption fee. Chatsworth-based Image will go ahead with the merger if Nyx pays the $500,000 fee by the end of the workday of March 5. Nyx had agreed in November to purchase all outstanding Image shares at $2.75 each. If the merger falls apart that will mark the second time that Image, one of the largest independent producers and distributors of home entertainment programming, has agreed to be bought out and then seen its suitor back out due to financial reasons. The situation with Nyx is a repeat of what Image went through a year ago when a planned merger with BTP Acquisition fell apart because BTP could not arrange the financing. In the BTP deal, controlling interest in Image would have gone to BTP but Image would have remained a publicly traded company. In the Nyx situation, Image notified the company, an affiliate of San Francisco-based new media and global investment group Q-Black LLC, it was in breach of its agreement after failing to pay a $1.3 million business disruption fee in January. Nyx paid the fee several weeks later. Image shareholders approved the merger in February and gave Nyx additional time to work out its financing in exchange for an additional disruption fee of $500,000. After Nyx failed to pay by the agreed date Image once again notified the company it was in breach of the agreement.

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