Publishing power house Ziff Davis Media, who also have the likes of EGM and 1UP in their ranks are in the brink of outright bankruptcy after its debts continue to pile up. Most recently the company skipped an interest payment due yesterday, with the company engaging in negotiations with debt holders to restructure as a result of their $390 million worth of debt.
quote:
"It's about correcting a capital-debt structure," said Young, who added that he could not speculate on what terms would be offered to debt holders.
Said one industry observer yesterday, "They are playing hardball with their lenders by withholding payments. It was inevitable. They were in a cash crunch and it was just a matter of time."
The company said it has retained Alvarez & Marsal to handle the restructuring. Alvarez & Marsal have done work in the past for companies such as Timex, DoubleClick and Levi Strauss.
In the most recent fiscal year ending Dec. 31, 2006, Ziff Davis Media had $181 million in revenue and cash flow of $27.1 million. The company also said it was going to delay filing its quarterly fiscal report for the period ending June 30.
News Source: Nypost
If this means that rabid PS3 fanboy from 1up will be out of a job, I for one welcome it!
quote:
"It's about correcting a capital-debt structure," said Young, who added that he could not speculate on what terms would be offered to debt holders.
Said one industry observer yesterday, "They are playing hardball with their lenders by withholding payments. It was inevitable. They were in a cash crunch and it was just a matter of time."
The company said it has retained Alvarez & Marsal to handle the restructuring. Alvarez & Marsal have done work in the past for companies such as Timex, DoubleClick and Levi Strauss.
In the most recent fiscal year ending Dec. 31, 2006, Ziff Davis Media had $181 million in revenue and cash flow of $27.1 million. The company also said it was going to delay filing its quarterly fiscal report for the period ending June 30.
News Source: Nypost
If this means that rabid PS3 fanboy from 1up will be out of a job, I for one welcome it!
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