Penthouse Publisher Bankruptcy: FriendFinder Networks Files For Chapter 11

[MrDeiz]

it was about to happen...
Manwin to the rescue?..

http://www.huffingtonpost.com/2013/0...n_3938927.html

Sept 17 (Reuters) - FriendFinder Networks, which publishes the adult magazine Penthouse, filed for Chapter 11 bankruptcy on Tuesday with the aim of cutting its debt load as the company struggled to make certain loan payments, a court filing showed.

The holding company, which also houses internet sites such as adultfriendfinder.com, listed out estimated liabilities of $500 million to $1 billion and assets less than $10 million, according to a court filing.

FriendFinder has not turned in a net profit at least since 2008, Thomson Reuters data shows. Total revenue for the four consecutive fiscal quarters ended June 30, 2013 was $293.70 million, a filing showed.

"Despite continuing member interest and high volume traffic, the debtors did not make certain payments to the holders of existing first lien notes and cash pay second lien notes which constituted a default under their respective indentures," FriendFinder said in the filing.

FriendFinder said it agreed with certain holders of its senior debt to restructure its balance sheet and has commenced Chapter 11 proceedings to implement its recapitalization plan.

In 2010 the owner of Penthouse magazine offered to buy rival Playboy Enterprises Inc for $210 million. The deal later fell through.

The case is FriendFinder Networks Inc, Case No. 13-12405, U.S. Bankruptcy Court, District of Delaware.

[MaDalton]

damn...

[lucas131]

lets wait for some huge promos!

[AdultKing]

This is the most obvious outcome since obvious outcomes were invented.

[helmuc]

humm....

[Markul]

No more jets then?

[arock10]

Moral of the story don't owner finance?

[Mr.Fiction]

Chapter 11 is better than Chapter 7.

[Roald]

Originally Posted by AdultKing

This is the most obvious outcome since obvious outcomes were invented.

[Mefo]

Originally Posted by AdultKing

This is the most obvious outcome since obvious outcomes were invented.

Couldn't have said it any better....

[Slappin Fish]

This is pretty good news for affiliates believe it or not.

Penthouse took on too much debt acquiring Various Inc.

Business creators/ owners like Andrew Conru don't usually sell the company they created when the deal is financed by so much debt as it can kill the company, at best it completely starves it of funds that should go towards development, staff, affiliates. But this was pre-2008, he probably thought Penthouse could pull it off.

Now that the original founders are back in control of the company the bond payments will be mostly off the books and AFF profitable again.

Oh and before people like Will76 laugh they should look at the conditions of those notes that were issued. The founders received massive payoffs for the past 6 years and now get AFF back.

[Mutt]

Originally Posted by Slappin Fish

This is pretty good news for affiliates believe it or not.

Penthouse took on too much debt acquiring Various Inc.

Business creators/ owners like Andrew Conru don't usually sell the company they created when the deal is financed by so much debt as it can kill the company, at best it completely starves it of funds that should go towards development, staff, affiliates. But this was pre-2008, he probably thought Penthouse could pull it off.

Now that the original founders are back in control of the company the bond payments will be mostly off the books and AFF profitable again.

Oh and before people like Will76 laugh they should look at the conditions of those notes that were issued. The founders received massive payoffs for the past 6 years and now get AFF back.

Where did you read anything about the original owners getting AFF back? They may have forced the company into Chapter 11 but why do you assume the original owners will get the company back or even want it back?

[Slappin Fish]

Originally Posted by Mutt

Where did you read anything about the original owners getting AFF back? They may have forced the company into Chapter 11 but why do you assume the original owners will get the company back or even want it back?

"...will cut the overall amount of debt in more than half and return the majority of the company to the original founders"

An extract from the email Medley sent, but anyway an agreement with note holders as it is worded only ever means holders of notes take control of the company to satisfy the debt.

[Slappin Fish]

As to why they would want it back EBITDA of 20 million per quarter is nothing to sneeze at and maybe they feel a sense of responsibility towards the company they created.

[L-Pink]

Originally Posted by AdultKing

This is the most obvious outcome since obvious outcomes were invented.

[adendreams]

Surprised Im the first to have to chime in that AFF is a top revenue stream for pirates. Lets hope this is just the first domino in their utter and total destruction.

[Cyber Fucker]

So, in human language ...should the links be pulled or not?
What it means for affiliates? Could someone from AFF step in and explain?

[Harmon]

Fucking Lars is one of the smartest mother fuckers I know... he got out at the right fucking time and lives like a god damned king every fucking day. I love that guy.

[The Porn Nerd]

Well, there goes my promoting AdultFriendFinder then.

[slapass]

AFF afiliates already received an email explaining this. We should be fine.

[Fat Panda]

rofl. such a shit company. anyone dumb enough to invest in them or promote them deserves what they get

[iSpyCams]

This is actually not funny at all but I spent like 40 seconds making it so I'm gonna share, dammit.

[BAKO]

Originally Posted by The Porn Nerd

Well, there goes my promoting AdultFriendFinder then.

I'm sure AFF will be just fine without u.

[woj]

Originally Posted by slapass

AFF afiliates already received an email explaining this. We should be fine.

pretty naive to think that when company is filing for bankruptcy = business as usual...

[Harmon]

Originally Posted by woj

pretty naive to think that when company is filing for bankruptcy = business as usual...

Yeah, not good but at least it looks like they are attempting to restructure their debt. I would like to assume that restructuring their debt would be to push more bonuses and payouts to affiliates in order to maximize their obligations due.... I'm probably wrong though

[MaDalton]

what's the usual process for Chapter 11? over here payments to employees have the maximum priority

[Seth Manson]

We arent worried in the least bit and will continue building traffic

[L-Pink]

Originally Posted by MaDalton

what's the usual process for Chapter 11? over here payments to employees have the maximum priority

Here it's probably bankruptcy lawyers.

[Far-L]

Originally Posted by Slappin Fish

This is pretty good news for affiliates believe it or not.

Penthouse took on too much debt acquiring Various Inc.

Business creators/ owners like Andrew Conru don't usually sell the company they created when the deal is financed by so much debt as it can kill the company, at best it completely starves it of funds that should go towards development, staff, affiliates. But this was pre-2008, he probably thought Penthouse could pull it off.

Now that the original founders are back in control of the company the bond payments will be mostly off the books and AFF profitable again.

Oh and before people like Will76 laugh they should look at the conditions of those notes that were issued. The founders received massive payoffs for the past 6 years and now get AFF back.

Yep... sort of reminds me of that movie "Goodfellas" when Pauly takes over the troubled restaurant...

[_Richard_]

Originally Posted by L-Pink

Here it's probably bankruptcy lawyers.

[Far-L]

Read the directions:

Rinse.

Lather.

Repeat.

[DWB]

. . . Legendary.

[AsianDivaGirlsWebDude]

It has also reached a settlement with Marc Bell and Daniel Staton, who hold $10.6 million in cash pay second-lien notes and own about 34% of the company’s common stock. The two also serve as non-executive co-chairmen of the company’s board of directors.

Some may remember Bell and Staton from the iBill debacle (where do you think they got the money to concoct this whole mess in the first place?)...those two should probably be behind bars.

We're still just hearing the FFN positive PR trying to put a good spin on their bankruptcy (FFN has been singing a rosy tune from when they launched their public stock at $10, only to watch it rapidly crash and burn).



There are still big lawsuits which will not be dismissed simply because Andrew and the crooks he got into bed with have tried yet another desperate trick to remain afloat.

I hope the public investors are able to get some sort of justice, and that the crooks at FFN are exposed, and eventually made to pay for ripping people off, and contributing in a massive way to piracy and the decline of the adult industry.



ADG

[ilnjscb]

Everyone has said that the bondholders were the key, and they finally asserted themselves. So they have cleared at least 100m in payments, and they still get the company back. This was a much better way to do it than going public, because then they could get sued. Instead, the current management will take that rap, and the original owners get it back after having been paid for it. Plus, they can throw their hands up and say, "but I didn't defraud the public" when in reality they created such a high debt and high interest rate that the new management had no choice but to raise public finds.

Well played - this Conru dude is a fucking genius. From Standford no less.



BTW I lurv being right

https://gfy.com/showpost.php?p=18627419&postcount=7

[mopek1]

Originally Posted by Seth Manson

We arent worried in the least bit and will continue building traffic

Why aren't you worried?

[96ukssob]

Guess I won't be getting my check this month

[brassmonkey]

Originally Posted by bossku69

Guess I won't be getting my check this month

didnt make the minimum ?

[tobe87]

If you have any questions or concerns you can contact me in private and I'll be happy to answer any questions or concerns you have. I have already hit a few of you guys up on ICQ or YIM, so check your IM's.

Skype - kalyn.sanders
YIM - kalyn_ffn
ICQ - 609762703

Official Press Release -

http://www.bloomberg.com/article/201...WIUjDt7EU.html

[slavdogg]

. This would ultimately return control of the company to founders of Various Inc., Andrew Conru and Lars Mapstead


according to AP

[Niktamer]

I'm not removing any links, I always been paid and i'm positive We will still be paid.

[Shap]

Surprising that xbiz still hasn't picked up the story. Bad sign for them in terms of being a news site.

[2MuchMark]

Originally Posted by AdultKing

This is the most obvious outcome since obvious outcomes were invented.

I would have to agree but I'm surprised it took this long. Their product seemed good enough but general talk at all of the trade shows was that they were doomed to fail.

[Seth Manson]

Originally Posted by bossku69

Guess I won't be getting my check this month

This MONTH?

I get paid weekly. As a matter of fack, just checked my bank account and the payment was posted today. Several days earlier than usual.

Originally Posted by mopek1

Why aren't you worried?

They've never fucked me over before, and business restructuring is one of the things that just goes along with business. AFF has always gone above & beyond for me.

[AsianDivaGirlsWebDude]

Originally Posted by Seth Manson

I get paid weekly. As a matter of fack, just checked my bank account and the payment was posted today. Several days earlier than usual.

They've never fucked me over before, and business restructuring is one of the things that just goes along with business.

AFF paid you several days early? Your posts are always so credible.



Poor suckers that believed the BS that FFN was peddling, and invested their own money, which only kept the charade going.

FFN was never worth what Penthouse paid for it with their own worthless stock. The insiders (on both sides, Andrew Conru and Marc Bell), have simply milked FFN for all it is worth, and then they did the aw shucks shuffle, and will probably continue bleeding FFN dry until the lawsuits or a government investigation finally does the company in.

In the meantime, the leeches that make money off of the piracy which FFN has long been a symbol of will continue with their mindless cheerleading.



ADG

[Ricardo4r]

Questions? No habla Ingles? I am your Spanish Speaking affiliate manager
Soy su gerente de afiliado no dudes en contactarme el negocio continua normal.

Ruben R
408-745-5466
[email protected]

[brassmonkey]

Originally Posted by Ricardo4r

Questions? No habla Ingles? I am your Spanish Speaking affiliate manager
Soy su gerente de afiliado no dudes en contactarme el negocio continua normal.

Ruben R
408-745-5466
[email protected]

[96ukssob]

Originally Posted by Seth Manson

This MONTH?

I get paid weekly. As a matter of fack, just checked my bank account and the payment was posted today. Several days earlier than usual.


They've never fucked me over before, and business restructuring is one of the things that just goes along with business. AFF has always gone above & beyond for me.

good news! I've been going back and forth with them on a W9 and just got the email saying they now have it... then saw this

hopefully everything is good

Originally Posted by brassmonkey

didnt make the minimum ?

after 14 years in adult, just passed the $50 mark!

cant wait for my first check!

[dillonaire]

Originally Posted by Ricardo4r

Questions? No habla Ingles? I am your Spanish Speaking affiliate manager
Soy su gerente de afiliado no dudes en contactarme el negocio continua normal.

Ruben R
408-745-5466
[email protected]

yo que quiero taco bell

[Best-In-BC]

Originally Posted by adendreams

Surprised Im the first to have to chime in that AFF is a top revenue stream for pirates. Lets hope this is just the first domino in their utter and total destruction.

[adultmobile]

"liabilities of $500 million to $1 billion and assets less than $10 million".

Please email me the manual "how to spend a billion dollar from just $10 million assets", thanks, I wished to do the same.