Image Entertainment Amends Convertible Note
17 11월 2009 - 6:15AM
Business Wire
Image Entertainment, Inc. (NASDAQ: DISK), a leading independent
licensee and distributor of entertainment programming in North
America, announced today that on November 15, 2009 it entered into
a Second Amendment Agreement (the “Amendment Agreement”) with the
holder (the “Holder”) of its 8.875% senior convertible note due
August 30, 2011 in the principal amount of $15,700,792.60 (the
“Note”). On November 12, 2009, the Holder provided notice of its
election to require the Company to make an installment payment of
principal and accrued interest under the Note on November 15, 2009
in the amount of $4,043,767.
The Second Amendment Agreement amends the Note to further change
the dates on which the Holder may request the next installment
payment under the Note. Upon delivery of appropriate notice, the
Holder may now require a $4 million principal payment (plus
accrued interest) on December 11, 2009 rather than November 15,
2009. The $4 million principal payment may be further deferred
until January 30, 2010 if the Company enters into a written
agreement for the sale of all or substantially all of its assets on
or prior to December 11, 2009, that, upon consummation of the
transaction contemplated by the agreement, would result in a change
of control of the Company. The January 30, 2010 installment
payment date noted in the prior sentence may be accelerated to any
date after December 11, 2009, but before January 30, 2010, if the
written agreement has been terminated or otherwise ceases to be in
full force and effect. The Second Amendment Agreement rescinded the
November 12, 2009 payment notice provided by the Holder thereby
avoiding a default under the Note. Pursuant to the Second Amendment
Agreement, the Company agreed to reimburse the Holder for the
actual and anticipated legal fees and expenses of its counsel and
any third party advisors incurred through December 11, 2009, such
fees not to exceed an aggregate of $150,000. The reimbursement
includes, without limitation, those fees and expenses incurred in
connection with the review and negotiation of the Second Amendment
Agreement and in connection with potential financing or sales
transactions that may grow out of the Company's evaluation of
strategic alternatives. The Company paid the first $100,000
installment on November 16, 2009. The remaining $50,000 must be
paid immediately upon the Company's receipt of a request from the
Holder accompanied by a reasonably detailed description as to how
the first installment was applied. The Company's failure to pay the
remaining $50,000 will constitute an event of default under the
Note. Any unused portion of the fees must be returned to the
Company.
The Holder may require additional $4 million principal payments
(plus accrued interest) on January 30, 2010, January 30, 2011 and
July 30, 2011. Accordingly, if the Holder makes the appropriate
notice with respect to the next installment payment and the Company
is entitled to defer the payment until January 30, 2010 as
permitted by the Second Amendment Agreement and the Holder makes
the appropriate notice with respect to the January 30, 2010
installment payment, the Company could have two $4 million
principal payments (plus accrued interest) due on January 30,
2010.
About Image Entertainment:
Image Entertainment, Inc. is a leading independent licensee and
distributor of entertainment programming in North America, with
approximately 3,200 exclusive DVD titles and approximately 340
exclusive CD titles in domestic release and approximately 400
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
titles containing more than 5,100 individual 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 Company’s goals, plans and
projections regarding the Company’s financial position, results of
operations, market position, product development and business
strategy. 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 or
other events or developments. 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, but are not limited to, (a) the Company’s
ability to continue as a going concern; (b) the Company’s ability
to service its principal and interest obligations on its
outstanding debt or otherwise renegotiate or refinance such
outstanding debt, including the potential December 11, 2009 and
January 30, 2010 principal and interest payments on its convertible
note, which renegotiation may not be successful and refinancing may
not be available on acceptable terms, if at all, which may trigger
defaults under its other debt agreements, create liquidity issues,
potentially force the Company to file for protection from its
creditors under Chapter 11 of the U.S. Bankruptcy Code and prevent
the Company from continuing as a going concern; (c) the Company’s
limited funds and the Company’s inability to raise additional funds
on acceptable terms or at all; (d) the Company’s ability to borrow
against the Company’s revolving line of credit; (e) the Company’s
ability to secure media content on acceptable terms; (f) the
Company’s DVD manufacturer continuing to manufacture and fulfill
orders to Company customers while the Company is past due on its
payables to such manufacturer; (g) the ability of the Company’s
common stock to continue trading on The NASDAQ Stock Market; (h)
the performance of business partners upon whom the Company depends
upon; (i) changes in the retail DVD and digital media and
entertainment industries; (j) changing public and consumer taste
and changes in customer spending patterns; (k) decreasing retail
shelf space for the Company’s industry; (l) further sales or
dilution of the Company’s equity, which may adversely affect the
market price of the Company’s common stock; (m) changes in the
Company’s business plan; (n) heightened competition, including with
respect to pricing, entry of new competitors, the development of
new products by new and existing competitors; (o) changes in
general economic conditions, including the performance of financial
markets and interest rates; (p) difficult, adverse and volatile
conditions in the global and domestic capital and credit markets;
(q) claims that the Company infringed other parties’ intellectual
property; (r) changes in accounting standards, practices or
policies; and (s) adverse results or other consequences from
litigation, arbitration or regulatory investigations.
For further details and a discussion of these and other risks
and uncertainties, see “Forward-Looking Statements” and “Risk
Factors” in the Company’s most recent Annual Report on Form 10-K,
and the Company’s most recent Quarterly Reports on Form 10-Q. 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. Actual results for the periods
identified may differ materially from management’s expectations.
Unless otherwise required by law, the Company undertakes no
obligation to publicly update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
Image Entertainment (NASDAQ:DISK)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Image Entertainment (NASDAQ:DISK)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024