Nyx Acquisition breaches merger agreement with Image Entertainment

By Lisa Kerner

Charlotte, N.C., March 20 - Nyx Acquisitions, Inc. failed to deliver an additional deposit of $500,000 to Image Entertainment, Inc. by March 19 as required under the companies' amended merger agreement in order to extend the merger closing date to March 26.

According to Image Entertainment, Nyx said it will not be closing the merger on the previously extended closing date of March 20.

Nyx, an affiliate of Q-Black, LLC, is in breach of the merger agreement, Image Entertainment said in a news release.

As a result, Image Entertainment said its board of directors will determine the appropriate course of action and announce its decision on Friday.

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's debt.

As previously reported, both companies 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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