Pine Brook, New Jersey-based image processing systems specialist Imnet Inc, which has been seeking a way out of intractable financial problems for about six months now, thinks it has finally found a solution and saviour in the shape of Mesirow Private Equity Investments Inc, which has signed a letter of intent to buy all the assets of its document imaging business. A new company will be formed by Mesirow and related investors and some members of Imnet’s management to buy the business. Imnet will receive between $2m and $2.5m in cash to pay off its creditors, and will also get 25% of the common stock of the purchaser. It will also receive junior preferred stock of the purchaser which will have a liquidation preference of $2m over the common stock. The purchaser will agree to provide Imnet on an ongoing basis with funds sufficient to comply with its reporting obligations as a publicly-held company for at least three years although after the sale, its remaining assets will consist largely of the securities issued in the transaction. Imnet will be restricted from distributing to its shareholders or engaging in a sale of the securities received from the purchaser for at least three years. A string of conditions have to be met before the deal can go through, and it could fall at any of the hurdles. Mesirow Private Equity Investments Inc is a division of Mesirow Financial, a firm providing stockbroking, asset management, financial planning, corporate finance, insurance, real estate and private equity investment services.
