Penthouse International Completes $24 Million Financing with Laurus Funds and Acquires Guccione New York City Mansion
25 2월 2004 - 12:30AM
PR Newswire (US)
Penthouse International Completes $24 Million Financing with Laurus
Funds and Acquires Guccione New York City Mansion NEW YORK, Feb. 24
/PRNewswire-FirstCall/ -- Penthouse International (OTC Bulletin
Board: PHSL) announced today that it has completed the placement of
$24 million in three-year, 7.5% convertible senior secured notes
with Laurus Master Fund, Ltd. ("Laurus Funds"), a financial
institution specializing in providing asset-based financing to
public companies. The notes, acquired by Laurus Funds, are secured
by a first mortgage on the double townhouse located at 14-16 East
67th Street, New York, New York and occupied by Robert Guccione,
Chief Executive Officer of General Media, Inc., Penthouse's 99.5%
owned- subsidiary and the editor-in-chief of Penthouse Magazine.
Penthouse used the proceeds to acquire the 67th Street townhouse
residence previously foreclosed upon by creditors of Mr. Guccione
and his affiliates and to retire related institutional mortgage
debt on the property held by affiliates of Deutschebank and Merrill
Lynch. General Media and its subsidiaries, the entities that own
and operate Penthouse Magazine and its related adult entertainment
businesses, are debtors-in-possession in a Chapter 11 bankruptcy
case currently pending in the United States Bankruptcy Court for
the Southern District of New York. General Media intends to propose
a revised plan of reorganization under which all of its secured and
unsecured creditors will receive greatly enhanced recoveries
generated by an infusion of new capital into the company by
Penthouse. This plan would supercede the current plan under which
control of General Media and subsidiaries would be transferred to
its bondholders, principally an entity affiliated with Marc Bell,
formerly of Globix Corporation. "We are encouraged to complete
needed debt restructuring for the real estate," said Claude Bertin,
Executive Vice President and Director of Penthouse International.
"Under a lease agreement with Penthouse, Mr. Guccione will continue
to reside at the townhouse and expects to continue to edit
Penthouse Magazine from his private offices located on that site.
His continued involvement with the magazine and related enterprises
is a key factor in Penthouse's ability to refinance General Media
and emerge from Chapter 11." Bertin added, "Longstanding media
speculation about Mr. Guccione's demise will hopefully be ended
with this transaction. We anticipate that Mr. Guccione will
continue to spend many more satisfying years living at 67th Street
as well as remain Chief Executive of Penthouse Magazine, publisher
of General Media and Editor-in-Chief of the magazine." The
townhouse is reported as one of the largest residences in
Manhattan. The historic property was originally built in
approximately 1896 and has served as the personal residence of Mr.
Guccione for nearly 30 years. Penthouse anticipates hosting
promotional events at the mansion. Through another subsidiary, Del
Sol Investments LLC, Penthouse owns real property in
Zijuantanejo-Ixtapa, Mexico and, subject to General Media and
subsidiaries emerging from bankruptcy as a continuing operating
affiliate of Penthouse, plans to develop a membership-based resort
complex. About Penthouse International, Inc. Penthouse
International, Inc., through its 99.5% owned subsidiaries General
Media, Inc. and Del Sol Investments LLC, is a brand-driven global
entertainment business founded in 1965 by Robert C. Guccione.
General Media's flagship PENTHOUSE brand is one ofthe most
recognized consumer brands in the world and is widely identified
with premium entertainment for adult audiences. General Media
caters to men's interests through various trademarked publications,
movies, the Internet, location-based live entertainment clubs and
consumer product licenses. General Media licenses the PENTHOUSE
trademarks to third parties worldwide in exchange for recurring
royalty payments. Safe Harbor This release contains statements
relating to future results of the Company (including certain
projections and business trends) that are "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995. Actual results may differ materially from those
projected as a result of certain risks and uncertainties, including
but not limited to the availability of DIP financing for the
General Media subsidiary, the impact that public disclosures of the
Company's liquidity situation and Chapter 11 filing may have on the
Company's businesses, the fact that no assurances can be given that
the General Media Plan of Reorganization will enhance the Company's
competitive position, as well as other risks and uncertainties
detailed from time to time in the filings of the Company with the
Securities and Exchange Commission. On August 12, 2003, General
Media and its direct and indirect subsidiaries (the Debtors) filed
voluntary petitions for relief under Chapter 11 of Title 11 of the
United States Code in the United States Bankruptcy Court for the
Southern District of New York. Penthouse International, Inc. owns
99.5% of the capital stock of General Media. Penthouse did not file
for protection under the Bankruptcy Code and its activities are not
subject to Bankruptcy Court supervision. On December 22, 2003, the
Debtors filed their Joint Plan of Reorganization and the disclosure
statement with respect to the Plan (as such Disclosure Statement
may be amended). If the Plan is confirmed pursuant to its current
terms, no distribution on account of equity is proposed under its
terms. For additional information, reference is made to publicly
available documents filed with the bankruptcy court to determine
the most current status of all matters related to the bankruptcy
case of General Media. The website of the Bankruptcy Court is
http://www.nysb.uscourts.gov/. For more information, contact: Gary
Geraci OTC Financial Network 781-444-6100 ext. 629
http://www.otcfn.com/phsl DATASOURCE: Penthouse International
CONTACT: Gary Geraci of OTC Financial Network, +1-781-444-6100 ext.
629, Web site: http://www.otcfn.com/phsl
Copyright