Image Entertainment May File for Bankruptcy

Company defaults on loan payment

Last Updated: December 16, 2009 @ 7:53 AM

Image Entertainment Inc. said it may be forced to file for Chapter 11 bankruptcy protection as it defaulted on a payment and is currently exploring strategic alternatives.

Shares of the company lost about half of their value in morning trading on Nasdaq.

The independent licensee and distributor of entertainment programing in North America said it had defaulted on an installment payment due December 14, as sought by the holder of its $15.7 million convertible notes.

Read more from Reuters