BLOOMBERG – Aug 30 – FriendFinder Networks, that has $511M of debt, was given three months by its bondholders to turn around a business that has never reported a profit. Bondholders have given the company until Nov. 14 to raise cash. Andrew Conru is the company’s biggest creditor, with ~$243M of bonds. Asked whether he would consider converting some of his second-lien notes to equity to lessen the company’s debt burden, Conru said he is “currently investigating all options.” AdultFriendFinder.com accounts for ~65% of the company’s revenue. The firm lost $31.1M last year and reported interest expense of $86M.
UPDATE: FriendFinder has released their response to Bloomberg article. "FriendFinder has received no such demand or notice from its bondholders. FriendFinder was either in compliance or had waivers for all of its debt covenants as of June 30, 2012."
by Zeke Faux
The full article was originally published at Bloomberg, but is no longer available.
FriendFinder is still hugely popular. 11+ million uniques a month according to Compete. http://siteanalytics.compete.com/adultfriendfinder.com/
The plot will thicken. Watch this space.
OnlinePersonalsWatch will link to press hits on this story and the commentary should be interesting from the idating industry.
FriendFinder is still hugely popular. 11+ million uniques a month according to Compete. http://siteanalytics.compete.com/adultfriendfinder.com/
The plot will thicken. Watch this space.
OnlinePersonalsWatch will link to press hits on this story and the commentary should be interesting from the idating industry.
I’d like to know why the company isn’t profitable yet. A bit strange.
I’d like to know why the company isn’t profitable yet. A bit strange.