Shares in Image Entertainment Inc. plunged as much as 40 percent Friday after the company claims its would-be buyer, BTP Acquisition Co., has breached its amended merger agreement.

Chatsworth-based Image Entertainment, a licensee, producer and distributor of home entertainment programming, said BTP had refused to provide information regarding its financing status. The sharp decline in share price shows investors are skeptical that the deal will be consummated.

Image agreed to be acquired about a year ago for $95 million, or $4.40 per share, which represented a 27 percent premium on Image’s $3.46 closing price the day before the announcement was made. The deal also includes the assumption of $24 million in debt.

Image then agreed last November to extend the closing date of its takeover by BTP to Dec. 3 to give BTP time to finalize its financing for the purchase. The acquisition has yet to be finalized.

Shares in Image plummeted 38 percent to $1.72 in early trading Friday on the Nasdaq. Shares had declined 24 percent for the year before today’s announcement.