IDA - Sep 19 - An email was sent to FFN affiliates. Here's the highlights.
- A substantial amount of the sale in 2007 was in the form of debt.
- They will cut the debt in half and return the majority of the company to the founders. (Andrew Conru and 'Legendary Lars')
- Less debt means more funds for affiliate payouts.
- Right now, affiliate checks have the highest priority.
And here's the email...
Dear Valued Affiliate,
I'm writing to share news about our efforts to make FriendFinder Networks an even better partner. After months of careful planning, the Company on September 17, 2013 announced a plan to restructure our long-term debt. As you may know, when the founders of the company sold it in 2007, a substantial amount of sale was in the form of debt. The noteholders of this debt includes both the founders and others.
If confirmed, the plan, which has the support of an overwhelming majority of the noteholders, will cut the overall amount of debt in more than half and return the majority of the company to the original founders. By reducing the debt, the company will have more resources to improve the websites and mobile services - and make you more money for your traffic.
Once we determined that a debt restructuring was the right course to take, we then had to figure out the best way to implement it. After a careful analysis, we determined that the most efficient and cost-effective way to do so is by using the provisions of Chapter 11 of the U.S. Bankruptcy Code. So, earlier today the Company filed voluntary Chapter 11 petitions.
Please realize that we are simply using the courts to help with the debt restructuring process. The company is still profitable just not enough to support the original level of debt.
Here's what really matters: There will be no changes to the affiliate program and your affiliate checks have the highest priority. In short, you should see no change in the way we work together. The websites and mobile services will continue unaffected. In fact, new features and services will continue to be rolled out as before.
Please let your current affiliate manager know if you have any questions.