Image Entertainment Announces Short-Term Extension of the Outside Merger Closing Date Allowing Parties to Continue Discussions Related to the Transaction
CHATSWORTH, Calif.--(Business Wire)--
Image Entertainment, Inc. (NASDAQ: DISK), a leading independent
licensee, producer and distributor of home entertainment programming
in North America, announced today that its pending acquisition by BTP
Acquisition Company, LLC did not close today; however, representatives
of the parties met today to discuss the status of the transaction and
determined it was in the parties' best interests to extend the outside
closing date under the Merger Agreement for a limited time to allow
for further discussions. Today's discussions were reviewed at a
meeting of the Board of Directors of Image held in the afternoon of
February 1, 2008. The Image Board meeting was recessed until Tuesday,
February 5, 2008, at which meeting the Board hopes to determine the
final status of the merger transaction.
BTP and Image entered into an extension agreement to extend the
outside closing date under the Merger Agreement to 2:00 p.m. PST on
Tuesday, February 5, 2008.
About Image Entertainment:
Image Entertainment, Inc. is a leading independent licensee,
producer and distributor of home entertainment programming in North
America, with approximately 3,000 exclusive DVD titles and
approximately 250 exclusive CD titles in domestic release and
approximately 450 programs internationally via sublicense agreements.
For many of its titles, the Company has exclusive audio and broadcast
rights and, through its subsidiary Egami Media, Inc., has digital
download rights to approximately 2,000 video programs and over 300
audio programs containing more than 4,500 tracks. The Company is
headquartered in Chatsworth, California. For more information about
Image Entertainment, Inc., please go to www.image-entertainment.com.
Forward-Looking Statements:
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
relating to, among other things, the proposed merger transaction
described in this press release. These statements may be identified by
the use of words such as "will," "may," "estimate," "expect,"
"intend," "plan," "believe," and other terms of similar meaning in
connection with any discussion of future operating or financial
performance. All forward-looking statements are based on management's
current expectations and involve inherent risks and uncertainties,
including factors that could delay, divert or change any of them, and
could cause actual outcomes and results to differ materially from
current expectations.
These factors include, among other things, our inability to raise
additional working capital, changes in debt and equity markets,
increased competitive pressures, changes in our business plan, changes
in the retail DVD and entertainment industries, and our inability to
effectively manage future growth from the CT1 Holdings distribution
agreement. For further details and a discussion of these and other
risks and uncertainties, see "Forward-Looking Statements" and "Risk
Factors" in our most recent Annual Report on Form 10-K, and our most
recent Quarterly Report on Form 10-Q. In addition, we may not be able
to complete the proposed transaction on the amended terms or other
acceptable terms, or at all, due to a number of factors, including
(1) the occurrence of any event, change or other circumstances that
could give rise to the termination of the merger agreement; (2) the
outcome of any legal proceedings that have been or may be instituted
against Image Entertainment and others following announcement of the
proposal or the merger agreement; (3) the inability to complete the
merger due to the failure to satisfy conditions to the completion of
the merger, (4) the failure to obtain the necessary financing provided
for in commitment letters received prior to execution of the
definitive agreement; (5) risks that the proposed transaction disrupts
current plans and operations and the potential difficulties in
employee retention as a result of the merger; (6) the ability to
recognize the benefits of the merger; (7) the amount of the costs,
fees, expenses and charges related to the merger and the actual terms
of certain financings that will be obtained for the merger; and
(8) the impact of any indebtedness incurred to finance the
consummation of the merger. Many of the factors that will determine
the outcome of the subject matter of this press release are beyond
Image Entertainment's ability to control or predict. Unless otherwise
required by law, we undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Image Entertainment, Inc.
Jeff M. Framer, 818-407-9100, ext. 299
jframer@image-entertainment.com
Copyright Business Wire 2008
