General Media files for Chapter 11

New York, Aug. 12 - General Media, Inc. filed for a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of New York along with eight subsidiaries.

The New York-based publisher of Penthouse and other publications said it obtained a $5 million debtor-in-possession credit facility from some of its secured bondholders.

"This filing provides the company with the opportunity to restructure its operations and finances, leaving it in a stronger position to realize the significant potential of the brand," said General Media chairman and Penthouse founder Bob Guccione in a news release.

"I believe the additional funding and prompt filing of a plan of reorganization will present the best means to preserve and enhance the value inherent in the brand for its many stakeholders."

General Media named T. Scott Avila to the new position of chief restructuring officer. Avila is a managing partner of Corporate Revitalization Partners LLC, a turnaround consultancy.

General Media is a 99.5% owned subsidiary of Penthouse International, Inc., which has not filed for bankruptcy protection.

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