SUNNYVALE, Calif. (AP) — The owner of Penthouse magazine has filed for Chapter 11 bankruptcy protection.
FriendFinder Networks Inc. said Tuesday that bankruptcy protection is the most efficient way for it to improve its balance sheet. The Sunnyvale, Calif., company has been struggling for some time with lower revenue and reported a loss of $49.4 million in its last fiscal year.
The company also runs a bevy of online dating and webcam sites such as Friendfinder.com, Seniorfriendfinder.com and Getiton.com.
FriendFinder said that it plans to refinance some of its debt through an agreement with certain noteholders that would ultimately return control of the company to the FriendFinder Networks founders.
It shares, which trade on the Over-the-Counter market, plunged 78 percent by midmorning to just over 7 cents, which trading more than 10 times normal.