Source Interlink Files For Chapter 11 Bankruptcy
ADMIN
- April 28 2009
- 2,852 views
- 27 comments
Several major news sources reported today that Source Interlink has filed for a pre-packaged, lender-approved Chapter 11 bankruptcy. According to a story on the New York Post:
“The pre-packaged Chapter 11 is expected to write off about $900 million in debt owed to a consortium of banks led by Citi.
Most of the debt was tied to Source’s $1.2 billion acquisition of Primedia’s enthusiast media division in May 2007, when Source shares were at $5.89″
According to Source Interlink’s Website, the company decided to use a “pre-pack reorganization” because it is the “quickest and easiest form of restructuring through the bankruptcy courts. Using this method, we expect to complete our restructuring in about 30 days.”
While the site says that Source Interlink will continue business as usual, it also states that: “Regretfully, all of the Company’s common stock will be canceled.”
For more information about what it means when a company files Chapter 11, check out industry consultant Jeff Harbaugh’s analysis HERE.
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April 28th, 2009 at 8:51 pm
Really, no comments yet, eh? Let the predictions begin…
If anyone with any sense at all looks at the P&L, there's no way Skateboarder or Snowboarder will come out the other side of this, and i give Surfing a 50/50 chance.
April 28th, 2009 at 11:19 pm
"Source Interlink will continue business as usual"
What exactly will "business as usual" entail? Racking up another $900 million dollars in debt that they'll just walk out on? Citi now owns 80% of the company. The same Citi that has received $45 Billion in bailout funds from the government. The way I see it, we taxpayers now own 80% of Source Interlink, so I expect those bastards to run a photo of my wack-ass style on the cover of Surfer Mag.
April 29th, 2009 at 12:05 am
I don't know man, I think Skateboarder and Snowboarder are done. I heard they've been losing money for a long time now.
April 29th, 2009 at 12:34 am
Snowboarder has been in a downward spiral for many years now. Sad, they used to be my favorite mag. Poor attention to detail (typos, misspellings, wrong photo credits, etc…), booring editorial (what happend?), piss poor unorganized account people, and declining circulation. I know this is a boardsports site but Powder is probably the cleanest of the mags in their quiver; Surfer is also decent; but shit Snowboarder & Skateboarder; put them out of their misery.
April 29th, 2009 at 12:39 am
Transworld SURF is doing great.
April 29th, 2009 at 12:45 am
they could combine the two mags and call it SURFINGER
April 29th, 2009 at 5:32 am
what am I going to read on the shitter…..
April 29th, 2009 at 3:11 pm
Snowboarder's quality has been in a nose dive for the last three years, surfer is dope, and Powder is a leader in the ski world. But to everybodies point; Skateboarder and Snowboarder are done.
April 29th, 2009 at 5:36 pm
I love ASG!
April 29th, 2009 at 8:46 pm
Sad - but $900 mill in debt has to come to an end sometime!
April 30th, 2009 at 12:00 am
I hate to see companies go out of business especially in this industry but, I agree Snow and Skateboarder are crap. Surfing ain't much better.
April 30th, 2009 at 5:47 am
who the fuck cares about skiing? save skate, surf and maybe snowboarding, no wait, fuck snowboarding too.
April 30th, 2009 at 7:12 am
Dude, how can you say snowboardermag´s quality has been a nose dive? Compared to TWS snowboarder is killing it. Snowboarder is actually filled with real content while TWSnow keeps looking more and more like FHM with "semi action just to show product" photos, sorry to say, really liked TWSnow in the past.
In all this post seems like a way for TW to discredit ASG..
April 30th, 2009 at 2:17 pm
YA bitch!
April 30th, 2009 at 2:21 pm
How do things even get to this point, without someone going "Umm, I think there is a problem here guys??" Long before it even reaches this level.
April 30th, 2009 at 2:24 pm
I wonder if the individual board members manage their own finances as bad as they manage the companies.
April 30th, 2009 at 5:20 pm
Put yourself out of your misery
April 30th, 2009 at 5:43 pm
This sounds so similar to the bank, housing, credit, madoff, auto, and endless other madness we've been hearing about. I guess publishers aren't immune to billion dollar ego, ostrich like head in the sand issues either.
April 30th, 2009 at 6:02 pm
Did anybody read the interview…oh…excuse me the blow job shop-eat-sleep gave to Al Crolius, VP of ASG? I mean really? I applaud his efforts for trying to get out in front of this dumpster fire that is Source Interlink by generating some positive PR but does he think we're that dumb to believe his BS? They need to put a muzzle on that guy before ASG looses any more value. And not to let Shop eat sleep of the hook either. They deserve a smack in the fanny for assuming we're that dumb too. I don't normally hate on these blogs but I was insulted. And now that my tax dollars are basically funding ASG, I want a free subscription to Powder- love that mag!!
Save SURFER!
April 30th, 2009 at 7:26 pm
To Chris Cote
Funny what you say about Transworld Surf. The rumor I keep hearing is that you all are on "deathwatch" - a great expression which I take to mean intensive care for those not expected to survive the night.
Heck, all mags are, but I guess some are more honest about it than others. Fess up CC - Transworld Surf is sub-prime, dude. Toxic, bradda.
April 30th, 2009 at 10:03 pm
Who are you kidding? Snowboarder is so horrible its hard to believe they have even been sending it to print. Snowboarder can barely even be called a magazine with how poor its quality and editorials have gotten. Hell, there are websites with better content than that magazine. KILL IT!
May 1st, 2009 at 3:37 am
HA! I love it… SES is a kiss ass, lame attempt at journalism.
May 4th, 2009 at 11:28 pm
How is "The Eye" going to pay for his PBR?
Looks like "Chief" got out before he became the "Janitor"
but thats ok he will be pushing a broom if he wants to stay at the big B in VT
May 6th, 2009 at 5:18 am
skiers care about skiing. Powder is a sick mag, save that and bike. <- one of the best bike publications (aside from decline)
May 6th, 2009 at 8:05 pm
Do you even read TW Surf you barney? Post your address and I'll personally buy you a subsciption. Sub-prime? What do you work at surfing?
May 11th, 2009 at 5:59 pm
If "great" means having 5 ad pages and a crappy editorial product…