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WHOA WHOA WHOA.... did anyone actually read that article?
The unstructured debt is all a result of how Penthouse funded the various acquisition. It really doesn't say that AFF is LOSING MONEY... it says they have a cashflow issue.
Basically, Penthouse was broke, took a huuuuuuuge loan to buy various, and fucked over their investers in the process. AFF and webcams still are throwing off cash, but not enough cash to fix how poorly Penthouse is doing, and all the debt penthouse brought on to buy various.
It's like penthouse bought a home, and now they can't pay the mortguage. Sure, they still feed themselves and have money left over, but not enough to pay off the loans they took out to move in..
Looks like by selling out, lars and andrew have condemned their employees and companies to be crushed under the mighty penthouse falling on them.
Typical poor merger... what's penthouse gain synergy wise from aff? what's aff's synergy with penthouse? poor pairing, mis-matched managment, and a desperation play to even try to buy various which was too big for their britches. And if the penthouse name would have brought substantial value to AFF, then the combination would create surplus value above it's selling price. However, no surplus value was created, and there was still all kinds of debt... bla bla bla
but for real... this bankruptcy has NOTHING to do with their pre-paid placements on Tube site, or AFF's business or business practices at all. It is basically penthouse's execs fucking up on a truly royal scale.
it also sounds like penthouse violated some loan terms which caused this long-term debt to move short term.
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