Ding Dong The Witch Nears Death

[RawAlex]

well, not really, but...

http://www.huffingtonpost.com/2013/09/17/penthouse-publisher-bankruptcy_n_3938927.html

Friend finder files for chapter 11. Smells like a mess:

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.

Considering that Andrew and Lars both took a serious shit kicking on the stock... it looks like things didn't work out as planned!

[Toby]

And the fire sale begins....

[RawAlex]

Well, interestingly, it seems that Lars and Andrew were holding much of the debt (at 17% a year?), and that they will end up back in control of the company once the bloodshed is over - assuming that they can get out alive. If there are any other major debt holders who push for other options, yes, a fire sale could be in the works. I don't think they want to go there.

[softball]

Well, apparently the personal jet rental and the big affiliate junkets....to Costa Rica, Turks and Caicos and the like are being wildly scaled back.

[RawAlex]

haha, yeah.

Actually, I wouldn't be shocked to see the SEC taking a look at this one, considering that it seems that much of the debt that killed the company was held by Lars and Andrew, who are the ones who "sold" the company to start with. Those notes (rumored at up to 17% interest!) pretty much sucked the life out of the company and killed any chance for investors to make money on the public offering. Simply put, that dog wasn't going to hunt, when most of the income was used to pay interest on a debt that wouldn't go away.

The result? Lars and Andrew did really well on collecting their interest payments every year, and when the company fails, they get it back. The only thing they didn't make out on was the shares, the shot at the truly big money died because it appears they didn't allow the company to be financially viable.

[Toby]

Shares were down to around .05 yesterday. I guess it will come down to whether anyone with enough clout complains to the SEC.

[gonzo]

haha, yeah.

Actually, I wouldn't be shocked to see the SEC taking a look at this one, considering that it seems that much of the debt that killed the company was held by Lars and Andrew, who are the ones who "sold" the company to start with. Those notes (rumored at up to 17% interest!) pretty much sucked the life out of the company and killed any chance for investors to make money on the public offering. Simply put, that dog wasn't going to hunt, when most of the income was used to pay interest on a debt that wouldn't go away.

The result? Lars and Andrew did really well on collecting their interest payments every year, and when the company fails, they get it back. The only thing they didn't make out on was the shares, the shot at the truly big money died because it appears they didn't allow the company to be financially viable.

Keep in mind thats 60M a year tasty morsal for someone to be eyeing.
I dont know that those 2 assclowns want it back.