Image bolsters borrowing capacity
By Susanne Ault -- Video Business, 5/14/2008
MAY 14 | Image Entertainment has increased its maximum borrowing availability on its Wachovia Capital Finance Corp. loan and security agreement to $20 million.
Previously, Image’s maximum on the May 2007 three-year credit line was $15 million.
The new terms will hold as long as Image maintains a minimum borrowing availability equal to or greater than $3.5 million at all times, which is down from the prior minimum borrowing availability requirement of $5 million.
“We believe this amendment indicates Wachovia’s confidence in Image’s new leadership and its ability to execute on its fiscal 2009 business plan, which began April 1, 2008,” Image chief financial officer Jeff M. Framer said. “We are moving past a very difficult fiscal 2008 and are excited about our prospects for the new fiscal year.”
Since Image’s merger collapsed with ThinkFilm owner BTP Acquisition Co. earlier this year, Image has vowed to turn around its business.
Image’s share price has tumbled in the wake of BTP’s failure to purchase the indie supplier. On Wednesday, Image’s shares were priced at $1.04, down 66% from the same point last year.
