Penthouse may soon be revived from Chapter 11 bankruptcy with a new group of creditors taking ownership of the company, according to a published report today.
Founder Bob Guccione told the New York Post he would remain editor-in-chief. General Media, the magazine's publisher, has filed for a bankruptcy reorganization plan that is pending final approval by the U.S. Bankruptcy Court for the Southern District of Manhattan, the report said.
Under terms of the filing, the Post reported that the old bondholders, who were owed about $45 million, would exchange the notes for 1 million shares of common stock and $27 million in new notes.
"These guys are prepared to invest and really grow the business in video, cable and Internet," Robert Feinstein, Guccione's attorney, told the newspaper.
The Post said the plan, which was filed on Tuesday, goes before a judge on Feb. 26 for final approval. If approved, Guccione officially would have the title of publisher emeritus, but would remain the editorial voice at an annual salary of $500,000 a year for the next 10 years, according to the report.
The company filed for bankruptcy in August.