The planned merger of Image Entertainment Inc. with a private investment firm appears in jeopardy after both sides accused each other of breaching their contract. The board of directors of the Chatsworth-based home entertainment producer and distributor is weighing its options, including terminating its merger agreement with BTP Acquisition Co. In October, Image shareholders approved a deal in which they would receive cash in exchange for BTP acquiring 94 percent of the company’s common stock. Image claims that BTP has not provided required information on the status of financing needed to close the deal and that the refusal is a breach of contract. BTP, headed by film financier and producer David Bergstein, countered that it was Image breaching the contract and that the merger agreement would not close.
