Image Entertainment said it may have to file for Chapter 11 bankruptcy protection after defaulting on a $4m payment on a senior secured note that was due on December 14. “The company does not currently have the funds, or access the funds, necessary to repay all of its outstanding obligations to the Holder, Wachovia, Arvato and its other creditors,” said Image Entertainment in a statement. Image also said it was “exploring strategic alternatives”.
This is bad news for Blu-ray enthusiasts, especially after reports had surfaced that Image was preparing the classic TV series 'The Twilight Zone' for release on Blu-ray (see blu-ray.com,
November 30).