Penthouse Owner FriendFinder Networks Seeks Bankruptcy
By Joe Schneider - Sep 17, 2013 2:24 AM ET
FriendFinder Networks Inc., the owner of Penthouse magazine and a sex-dating website, sought bankruptcy protection in Delaware after reporting losses in seven consecutive years to 2012.
The Boca Raton, Florida-based company listed assets of less than $10 million and liabilities of as much as $1 billion in today’s Chapter 11 filing in Wilmington, Delaware.
The company hasn’t made a profit since at least 2006 and reported a second-quarter net loss of $10.3 million, or 32 cents a share, on Aug. 15. It had cash or equivalents of $38.6 million on Mar. 31 compared with outstanding principal debt of $544 million, according to the financial statement.
FriendFinder was working with advisers and lenders to refinance the long-term debt, Chief Executive Officer Anthony Previte said in the Aug. 15 statement. He said at the time he was confident the debt issue would be resolved.
PMGI Holdings Inc. and 38 other affiliates also filed for bankruptcy.
FriendFinder was delisted from Nasdaq on Aug. 7 and is trading on the OTCQB Marketplace where shares rose 1 cent yesterday to 33 cents.
The case is In re: FriendFinder Networks Inc. (FFNT) 13-12405. U.S. Bankruptcy Court District of Delaware (Wilmington).
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