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MARKETPLACE:  Auto | Jobs | Personals | Yellow Pages  September 2, 2004
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Penthouse Magazine to Emerge From Bankruptcy
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NEW YORK, Aug. 13 /PRNewswire/ -- PET Capital Partners LLC, an affiliate of Marc Bell Capital Partners LLC and the holder, with its related entities, of approximately 89% of the Senior Notes of General Media, Inc., the publisher of Penthouse magazine (the "Company"), announced today the confirmation of a Plan of Reorganization (the "Plan") by the United States Bankruptcy Court for the Southern District of New York.

The Plan results from discussions between the Company, PET Capital, the Official Committee of Unsecured Creditors and the principal unsecured creditors. Under the Plan, holders of the Company's Senior Notes would exchange them for 1 million shares of common stock of the reorganized company, representing 100% of the new common equity, plus new Term Loan Notes of up to $27 million. The new Term Loan Notes will bear interest at 13% per annum, payable in kind for the first three years of their seven-year term, and be secured by a first priority lien on all the reorganized company's assets, subordinate only to a lien granted to a lender under an exit financing facility of up to $20 million. General unsecured creditors, whose claims aggregate approximately $12 million, will share pro rata in $2 million in cash, with the balance payable in new Term Loan Notes up to $10 million and, under certain circumstances, an additional $1 million in principal amount of new Term Loan Notes. General Media, Inc. is currently a 99.5% owned subsidiary of Penthouse International, Inc. , which has not filed for bankruptcy protection. No distribution on account of equity will be made under the Plan.

"We believe the continued publication of Penthouse is now ensured for many years," commented Marc H. Bell, Managing Partner of Marc Bell Capital Partners LLC. "This Plan of Reorganization will enable the Company to go forward as a financially viable enterprise with a manageable debt load. It also represents an important vote of confidence on the part of the major creditors, whose support has enabled us to achieve this result."

PET Capital estimates that it will consummate the Plan of Reorganization and emerge from Chapter 11 by the end of August 2004.

A copy of the confirmed Plan of Reorganization is posted on the website of the Bankruptcy Court, http://www.nysb.uscourts.gov/.

This release contains statements relating to future results of the Company that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of various risks and uncertainties.

Marc Bell Capital Partners is a private investment firm based in Boca Raton, Florida. The firm invests in distressed assets and commercial real estate in the form of acquisitions, recapitalizations, leveraged buyouts, debt restructurings, special situation financing and Chapter 11 reorganizations including debtor-in-possession and exit financing.

CONTACT: Mr. Marc H. Bell of PET Capital Partners LLC, +1-561-988-1700

Disclaimer: Information contained on this page is provided by companies featured through PR Newswire. PR Newswire, WorldNow and this Station cannot confirm the accuracy of this information and make no warranties or representations in connection therewith.

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