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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND
AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a)
(Amendment No. 13)
Image Entertainment, Inc.
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(Name of Issuer)
Common Stock, No Par Value
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(Title of Class of Securities)
452439-10-2
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(CUSIP Number)
Arnold L. Wadler, Esq., Image Investors Company,
One Meadowlands Plaza,6th Floor, East Rutherford, New Jersey 07073
(201) 531-8050
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 22, 1998
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(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d1-(f) or 13d-1(g), check
the following box *.
(Continued on following pages)
(Page 1 of 9 Pages)
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CUSIP No. 693344103 13D PAGE 2 OF 9 PAGES
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Image Investors Co.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) Y
(b) Y
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC, AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) Y
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
DE
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7 SOLE VOTING POWER
7,106,140
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY ------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 7,106,140
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10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,106,140(1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES Y
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
40.2%
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14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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(1) Includes (i) anti-dilution rights to acquire 347,508 shares of common
stock and (ii) 1,379,310 shares of common stock issuable upon conversion of a
loan.
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CUSIP No. 693344103 13D PAGE 3 OF 9 PAGES
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
John W. Kluge
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) Y
(b) Y
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC, AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) Y
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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7 SOLE VOTING POWER
7,106,140
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY ------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 7,106,140
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,106,140(1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES Y
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
40.2%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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(1) Includes (i) anti-dilution rights to acquire 347,508 shares of common
stock and (ii) 1,379,310 shares of common stock issuable upon conversion of a
loan.
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CUSIP No. 693344103 13D PAGE 4 OF 9 PAGES
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Stuart Subotnick
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) Y
(b) Y
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC, AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) Y
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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7 SOLE VOTING POWER
7,106,140
NUMBER OF ------------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY ------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 7,106,140
------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,106,140(1)
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES Y
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
40.2%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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(1) Includes (i) anti-dilution rights to acquire 347,508 shares of common
stock and (ii) 1,379,310 shares of common stock issuable upon conversion of a
loan.
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INTRODUCTION
This Amendment No. 13 supplements and amends the Schedule 13D (as so
amended, the "Schedule 13D") filed by Image Investors Co., a Delaware
corporation ("IIC"), on July 18, 1988, as amended by Amendment No. 1 thereto
filed on December 2, 1988, Amendment No. 2 thereto filed on January 12, 1989,
Amendment No. 3 thereto filed on January 18, 1989, Amendment No. 4 thereto
filed on February 4, 1989, Amendment No. 5 thereto filed on February 15,
1989, Amendment No. 6 thereto filed on May 11, 1989, Amendment No. 7 thereto
filed on January 12, 1990 and Amendment No. 8 thereto filed on May 10, 1990,
Amendment No. 9 thereto filed on June 25, 1990, Amendment No. 10 thereto
filed on June 28, 1990, Amendment No. 11 thereto filed on December 30, 1992
and Amendment No. 12 thereto filed on October 29, 1997 in the following
respects only (capitalized terms used herein shall have meanings ascribed to
such terms in the Schedule 13D).
ITEM 1. SECURITY AND ISSUER.
No Amendment
ITEM 2. IDENTITY AND BACKGROUND.
IIC is a Delaware corporation whose principal business is to make
investments. The address of its principal business and the address of its
principal office is One Meadowlands Plaza, East Rutherford, New Jersey 07073.
Attached hereto as Exhibit A is a listing of the name, the residence or
business address, the citizenship, the present principal occupation or
employment and the name, principal business and address of any corporation or
other organization in which such employment is conducted of each person who
is an executive officer or director of IIC and each person who controls IIC.
No corporation or other person is ultimately in control of IIC. None of the
persons named above or in Exhibit A has, during the past five years, been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or has been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such
proceeding was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to,
federal or state securities laws or finding any violation with respect to
such laws.
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ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
IIC used working capital to make its investments of Common Stock of the
Issuer. Such amount was contributed by the stockholders of IIC. The source
of such funds was a distribution from Metromedia Company, a general
partnership beneficially owned by the stockholders of IIC.
ITEM 4. PURPOSE OF TRANSACTION.
On December 22, 1998, IIC purchased 600,000 additional shares of Common Stock
at a price of $5.00 per share or an aggregate purchase price of $3,000,000 in
connection with the Issuer's offering of 2,400,000 shares of Common Stock
pursuant to a registration statement on Form S-2 filed by the Issuer with the
Securities and Exchange Commission (the "SEC") and declared effective by the
SEC on December 21, 1998.
In addition, on October 1, 1998 IIC exercised its Rights to acquire 511
shares of Common Stock at an aggregate exercise price of $379.67.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) IIC currently owns 7,106,140 shares of Common Stock, which
figure includes (i) anti-dilution rights to purchase (at $.817
per share) 347,508 shares of Common Stock and (ii) 1,379,310
shares issuable upon the conversion of the Loan (see Item 5(c)
below). Such 7,106,140 shares constitute approximately 40.2% of
the outstanding shares of Common Stock of the Issuer (assuming
exercise of the anti-dilution rights and conversion of the Loan
by IIC, and based upon the number of such outstanding shares
disclosed in the Issuer's Quarterly Report on Form 10-Q for the
period ended September 30, 1998).
(b) IIC has the sole power to vote and to dispose of such shares and
options.
(c) On October 14, 1997, pursuant to the Credit Agreement IIC loaned
to the Issuer $5 million. Such loan is convertible at any time
into 1,379,310 shares of Common Stock. Therefore, IIC may be
deemed to beneficially own such 1,379,310 shares of Common Stock
of the Issuer.
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ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
No Amendment
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit A listed below has been amended and the amended Exhibit A is filed
herewith. Exhibits B, C and D listed below have been filed with Amendment
No. 12 filed on October 29, 1997.
Exhibit A - Executive Officers of IIC
Exhibit B - 1987 Stock Purchase Agreement
Exhibit C - Shareholders Agreement
Exhibit D - Credit Agreement
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SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
hereby certify that the information set forth in this statement is true,
complete and correct.
Dated: December 31, 1998
/s/ Stuart Subotnick
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Stuart Subotnick
Executive Vice President
Image Investors Co.
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EXHIBIT A
IMAGE INVESTORS CO.
C/O METROMEDIA COMPANY
ONE MEADOWLANDS PLAZA
EAST RUTHERFORD, NEW JERSEY 07073
OFFICERS
POSITION WITH PRINCIPAL OCCUPATION
NAME IMAGE INVESTORS CO. OR EMPLOYMENT
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John W. Kluge President; Director Chairman and President,
Metromedia Company
(Telecommunications,
Hospitality and Food
Services and other
Investments)
Stuart Subotnick Executive Vice President; Executive Vice President,
Director Metromedia Company
Arnold L. Wadler Senior Vice President, Senior Vice President,
Secretary Secretary and General
Counsel, Metromedia
Company
Robert A. Maresca Senior Vice President Senior Vice President,
and Treasurer Metromedia Company
Seymour Wigod Senior Vice President Senior Vice President,
Metromedia Company
Mario P. Catuogno Vice President Vice President,
Metromedia Company
David Gassler Vice President and Vice President,
Controller Metromedia Company
Steven J. Joffe Vice President - Tax Vice President,
Metromedia Company
Kenneth Wolk Vice President Vice President,
Metromedia Company
Mitchell J. Stier Assistant Secretary Assistant Secretary,
Metromedia Company
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