The war of words between Image Entertainment Inc. and BTP Acquisition Co. LLC has escalated, reducing the chances of closing the proposed merger agreement between the two. Chatsworth-based Image seeks to move ahead with distributing feature films from CT1 Holdings LLC, an affiliate company of BTP Acquisition. Image and CT1, the parent company of Thinkfilm and Capitol Films, signed the multi-year distribution agreement in December. Image values the agreement at $30 million. CT1 purportedly terminated the agreement last week at the same time BTP claimed that Image had breached a proposed merger agreement giving BTP control of Image. 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.