Penthouse Owner FriendFinder Networks Seeks Bankruptcy

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).

To contact the reporter on this story: Joe Schneider in Sydney at jschneider5@bloomberg.net

To contact the editor responsible for this story: Douglas Wong at dwong19@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.