Quote:
Originally Posted by Slappin Fish
Wrong.
AFF was and still should be a profitable business.
Problem is how Penthouse funded its purchase. Mostly Notes, basically they borrowed and dumped all the debt on AFF's books. So AFF has to pay for AFF. The company is now raising equity cash to pay the previous owners Various Inc.
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So they bought the business expecting the profits from it to pay for the purchase. Now they think if they float the company they can pay the debt. And after that does not work what do you expect them to do next to pay the debt?
With executives carrying this kind of planning who is going to invest in the business?
I doubt if many will touch it.
What is clear from the report is the part about Internet advertising. Does not seem to pay as well as many thought. Maybe this will have more knock on effects than many thought.