FriendFinder Networks Plan Effective


FriendFinder Networks’ Modified Second Amended Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on December 17, 2013. The Plan is expected to reduce the Company’s annual interest expense by over $50 million, eliminate approximately $300 million of secured debt and return control of the Company to founder Andrew Conru. Under the Plan, the 14% Senior Secured Notes due 2013 will be exchanged for new notes in the same principal amount, plus certain additional consideration in the form of cash or notes. Holders of the 11.5% Non-Cash Pay Secured Notes due 2014 and 14% Cash Pay Secured Notes due 2013 will receive substantially all of the new common stock to be issued by reorganized FriendFinder Networks, plus cash consideration subject to certain conditions. The Company’s current common stock will be extinguished once the agreement becomes effective and will no longer trade on the open market. This web-based social networker filed for Chapter 11 protection on September 17, 2013, listing $452 million in pre-petition assets.

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