Image Entertainment may file for bankruptcy
12-17-09, 11:00 AM
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Image Entertainment may file for bankruptcy
From http://www.reuters.com/article/idUSSGE5BE0K620091215 :
Dec 15 (Reuters) - Image Entertainment Inc (DISK.O) said it may be forced to file for Chapter 11 bankruptcy protection as it defaulted on payment under convertible note and it was exploring strategic alternatives.
Shares of the company lost about half of their value in morning trade on Nasdaq.
The independent licensee and distributor of entertainment programming in North America said it had defaulted installment payment due on Dec. 14, as sought by the holder of its $15.7 million convertible notes.
"The company does not currently have the funds, or access to the funds, necessary to repay all of its outstanding obligations to the Holder, Wachovia, Arvato and its other creditors," Image said in a statement.
The company, which had amended its 8.875 percent senior convertible note in October, and again in December, said it failed to pay the installment of $4 million and it does not expect to cure the defaults, which could adversely affect its liquidity and business.
Shares of Chatsworth, California-based Image were down 49 percent at 26 cents in late morning trade on Nasdaq. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Gopakumar Warrier)
Shares of the company lost about half of their value in morning trade on Nasdaq.
The independent licensee and distributor of entertainment programming in North America said it had defaulted installment payment due on Dec. 14, as sought by the holder of its $15.7 million convertible notes.
"The company does not currently have the funds, or access to the funds, necessary to repay all of its outstanding obligations to the Holder, Wachovia, Arvato and its other creditors," Image said in a statement.
The company, which had amended its 8.875 percent senior convertible note in October, and again in December, said it failed to pay the installment of $4 million and it does not expect to cure the defaults, which could adversely affect its liquidity and business.
Shares of Chatsworth, California-based Image were down 49 percent at 26 cents in late morning trade on Nasdaq. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Gopakumar Warrier)
12-17-09, 12:16 PM
#3
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Re: Image Entertainment may file for bankruptcy
Well, if it does come out it might be best to jump on it right away. I'm thinking BCI here. Drive-In 4 came out just after they announced closing shop. After that initial shipment, it immediately went out of print.
12-17-09, 06:46 PM
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Re: Image Entertainment may file for bankruptcy
They always had bad business choices over the years. They aquired a lot of good titles, either sat on them for a long time, or release substandard versions, release things with no promotion at all, etc.
Someone else needs to step in and take control.
Someone else needs to step in and take control.
12-18-09, 02:45 AM
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Re: Image Entertainment may file for bankruptcy
Image started out by releasing porno movies on laserdisc- they need to go back to that and release quality editions of all the theatrical porn movies that came out (as in REAL movies released to theaters in 35mm, not the direct to video crap that displaced it.)
<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/XznGX_rkjrU&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/XznGX_rkjrU&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
In the 90s they were best known for putting out stuff on laserdisc from small companies that wouldn't have been able to release on the format by themselves (though prices were usually ridiculous). They did the same with DVD in the beginning, but with them so easy to produce now they haven't been needed so much.
Stuff going out of print usually happens because the company owning the rights to the content decides not to license it to Image anymore, then gets released by the owners themselves or just forgotten about. In the first years of DVD, Universal was putting out their own discs but licensed a few titles to Image that they didn't think would sell very well. They stopped licensing those and most eventually came back out on their own label. I imagine the Twilight Zone series will be reissued by Viacom if Image goes under.
<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/XznGX_rkjrU&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/XznGX_rkjrU&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
In the 90s they were best known for putting out stuff on laserdisc from small companies that wouldn't have been able to release on the format by themselves (though prices were usually ridiculous). They did the same with DVD in the beginning, but with them so easy to produce now they haven't been needed so much.
Stuff going out of print usually happens because the company owning the rights to the content decides not to license it to Image anymore, then gets released by the owners themselves or just forgotten about. In the first years of DVD, Universal was putting out their own discs but licensed a few titles to Image that they didn't think would sell very well. They stopped licensing those and most eventually came back out on their own label. I imagine the Twilight Zone series will be reissued by Viacom if Image goes under.
Last edited by Alan Smithee; 12-18-09 at 02:55 AM.
12-18-09, 01:00 PM
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Re: Image Entertainment may file for bankruptcy
You said it, brother! They also distribute Criterion. Are they still holding on to some Shaw/Celestial titles or have they all been released?
Last edited by R. Hilton; 12-18-09 at 01:03 PM.
12-18-09, 07:47 PM
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Re: Image Entertainment may file for bankruptcy
Actually Universal sued Image because Image did a price reduction on some titles and UNI claimed that violated the contract. It took a long time for most of that stuff to come back out.
12-18-09, 09:31 PM
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Re: Image Entertainment may file for bankruptcy
And yet I don't want to see them go under simply because of the chain effect I'm afraid it would have on DVD distribution in general (the last thing we need is a future of Warner Archive-like distribs).
12-18-09, 10:14 PM
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Re: Image Entertainment may file for bankruptcy
I thought they filed bankruptcy every couple of years. I don't think they've ever made money.
Last edited by hasslein; 12-19-09 at 07:52 AM.
