The on-again, off-again marriage between Image Entertainment Inc. and Nyx Acquisitions Inc. is back on.
Image, which on Wednesday called off its planned merger with Nyx, on Thursday said the San Francisco investment firm has come up with part of a required payment. Image said it will give the company until Friday before permanently pulling the plug on the $100 million deal.
The Chatsworth home entertainment distributor said Nyx, an affiliate of Q-Black, LLC, delivered an additional deposit of $300,000 to a trust account for the business interruption fee, and notified Image that the remaining $200,000 would be delivered by Friday.
Image said it agreed to temporarily revoke its termination of the amended merger agreement, in which Nyx was supposed to increase the business interruption fee to $2.3 million in exchange for being able to extend the merger's closing date until March 20.
Image in November agreed to sell itself to Nyx for $60.2 million in cash, plus assumption of debt, in a transaction originally to have closed February 26.
The two companies last week agreed to extend the time to complete the deal, but Nyx failed to deposit $500,000 by the deadline.
The DVD distributor which has struggled as the technology for distributing home entertainment changed -- has had repeated problems finding an acceptable suitor. A planned merger with BTP Acquisition fell apart in February 2008 because BTP could not arrange the financing. Image's board and management earlier fought off an unfriendly takeover attempt by Santa Monica independent studio Lions Gate Entertainment Inc.
Image shares were up 24 cents, or 26 percent, to $1.16 in morning trading on the New York Stock Exchange.
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