FriendFinder Networks Files For Chapter 11

[lennco]

FriendFinder Networks is in some hot water

http://www.huffingtonpost.com/2013/09/17/penthouse-publisher-bankruptcy_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.

 

[FPForum]

Haha. Wow! Looks like all those adult friend finder ads weren't paying off for them. I guess you could have seen this coming with all the competition in that niche these days.

 

[enlytend]

Gee - you'd think they would have been turning a nice a profit, given their alleged questionable billing practices and treatment of their affiliates ...

 

[alien51]

So people are still paying for porn ??

I tried their free AdultFriendFinder in the past. Almost 98% of the time, you are trying to hook up with a bot, or a male employee pretending to be a girl.