-- U.S. action does not involve international markets
-- Chapter 11 filing is limited to U.S. operations
-- Business to operate as usual under Chapter 11
SUNNYVALE, California, Sept. 18, 2013 /PRNewswire/ -- FriendFinder Networks Inc. (OTCQB: FFNT) provided the following information today to clarify actions taken in the U.S. to implement a debt reduction plan.
- Only the Company's U.S. operations are included in the Chapter 11 process. None of the Company's overseas' operations, including those in Europe, are included in the Chapter 11 process. All international operations are continuing as normal.
- FriendFinder Networks will operate as usual during the Chapter 11 process. Under the plan, there will be no impact on the user experience, employees will continue to be compensated as normal, and the Company will pay vendors for all goods and services provided on or after the September 17, 2013 filing date.
- All businesses in all markets remain operational.
As announced on September 17, 2013, the Company has reached an agreement with key stakeholders on a plan to reduce its annual interest expense by over $50 million and eliminate approximately $300 million of secured debt. The debt-reduction agreement will be facilitated through a Chapter 11 process permitted under the United States Bankruptcy Code.
The process does not apply to the Company's international operations. To be clear, unlike the common European Bankruptcy process which is predicated on an insolvent company and results in a liquidation, the U.S. process is a restructuring and refinancing of debt which is aimed at strengthening the Company.
FriendFinder Network's Chapter 11 process is expected to be completed by no later than January 31, 2014. The Company expects to emerge from the process with a much stronger balance sheet and the ability to reinvest in its business and position some of the strongest brands in the market for additional growth.
ABOUT FRIENDFINDER NETWORKS INC.
FriendFinder Networks Inc. (www.FFN.com) is an Internet-based social networking and technology company operating several of the most heavily visited websites in the world, including FriendFinder.com, Amigos.com, AsiaFriendFinder.com, BigChurch.com and SeniorFriendFinder.com. FriendFinder Networks Inc. also produces and distributes original pictorial and video content and engages in brand licensing.
SOURCE FriendFinder Networks Inc.