Image defends output deals against BTP accusations
By Susanne Ault -- Video Business, 2/1/2008
FEB. 1 | Image Entertainment and its would-be parent BTP Acquisition Co. traded barbs late in the week, intended to discredit each other’s breach of contract claims.
In a Jan. 30 letter, BTP disclosed further reasons why it believes Image has broken the terms of its merger agreement, including entering into catalog DVD sales and licensing pacts without BTP consent. Specifically, BTP says it must approve when Image enters into output deals that involve five or more titles, as well as such deals that involve aggregate payments in excess of $500,000. BTP does not name the allegedly offending Image output deals.
On Feb. 1, Image defended several of its recent output deals, explaining that BTP embraced them and was aware of them. For example, Image says BTP owner David Bergstein congratulated Image CEO Marty Greenwald in a Dec. 14 email about a Canadian distribution agreement with E1. Also, according to the letter, Bergstein approached Image to acquire U.S. home video rights to Capitol Films’ Before the Devil Knows Your Dead, among other titles, under his purview.
Additionally, Image upholds its September output extension with Criterion through 2013. It does not represent a new agreement, according to Image, and so falls out of BTP’s merger agreement stipulations.
Also, Image dismisses BTP’s claims that the DVD supplier needs to come up with any extra financing or bank approvals to consummate the merger. Image contends that BTP is making these accusations because it is balking at financing its purchase of Image.
