Nyx Acquisition to cure breach of merger agreement with Image Entertainment

By Lisa Kerner

Charlotte, N.C., March 23 - Image Entertainment, Inc. said Nyx Acquisitions, Inc. intends to cure its breach of the amended merger agreement with Image Entertainment by delivering the outstanding balance of the business interruption fee to a trust account.

Nyx is confident it will be able to close the merger "within the coming weeks," an Image Entertainment news release said.

The companies have been negotiating a mutually satisfactory agreement to extend the merger closing date.

As previously reported, Nyx failed to deliver an additional deposit of $500,000 to Image Entertainment by March 19 as required under the amended merger agreement in order to extend the merger closing date to March 26.

In November, Image Entertainment announced that it agreed to be acquired by Nyx, an affiliate of Q-Black, LLC, for $2.75 per share in a transaction valued at about $100 million, including the assumption of Image Entertainment's debt.

Both companies had agreed to extend the closing date for their merger to March 20 from Feb. 26.

Image Entertainment is an independent licensee, producer and distributor of home entertainment programming in North America. The company is based in Chatsworth, Calif.

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