Image Entertainment Inc. said it intends to file an appeal with Nasdaq regulators in hopes of keep the home entertainment distributor from being delisted.

The Chatsworth company said over the weekend that it received a letter from Nasdaq staff last week, warning that the company had failed to bring its common stock value above the required $15 million minimum for Nasdaq Global Market companies.

A pending appeal would keep Image’s stock on the Nasdaq until regulators make final determination, the company said. If the company doesn’t file an appeal by Tuesday, trading could be suspended on Thursday.

Last week, Image defaulted on a $4 million debt payment for a $15.7 million senior convertible note, moving the company closer to a possible Chapter 11 reorganization. The company said it was working with its financial advisor to explore strategic alternatives.

Image shares on Monday closed up 2 cents, or 6 percent, to 28 cents.