Nyx fails to make payment to extend merger with Image Entertainment

By Lisa Kerner

Charlotte, N.C., April 14 - Image Entertainment, Inc. said it is negotiating with Nyx Acquisitions, Inc., an affiliate of Q-Black, LLC, to amend the companies' Nov. 20 merger agreement.

Nyx failed to deliver $1 million to Image Entertainment's operating account on April 10 in order to extend the merger closing date to April 20 from April 6.

The merger originally had been slated to close on Feb. 26.

Image Entertainment said its board of directors planned to meet on Tuesday to review the situation and update shareholders.

As previously reported, Nyx can extend the closing date to May 4 if it notifies Image Entertainment by Thursday and adds a further $3 million to the interruption fee.

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

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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