Going Bust, Again

NY TIMES -- Jan 7 -- Friendfinder Networks (formerly Penthouse Media Group) is trying to go public in this market and plans to list on NYSE if it does find buyers. Penthouse went bankrupt in 2003. It was taken over by Pet Capital Partners, which gained control by buying up Penthouse bonds that received stock in the reorganization. If investors will not put up enough money, Bankruptcy No. 2 looms again. The big investment banks seem to be shying away from the deal, even though at $460m it would generate badly needed fees. The only underwriter is a Cyprus-based subsidiary of a Russian bank. FULL ARTICLE @ NY TIMES

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