General Media in default over failure to make interest payment

By Carlise Newman

Chicago, April 30 - General Media Inc. failed to make an interest payment on its 15% series C notes within the 30-day grace period and is now in default.

The company was required to make a principal payment of $2 million and an interest payment of $1.6 million on March 31, and on April 14 a notice of event of default was issued by the indenture trustee, according to a filing with the Securities and Exchange Commission. On April 15 and 16, the company fully paid the $2 million principal amount, but did not make the $1.6 million interest payment by April 30.

The notes require amortization payments of $6.5 million during the calendar year 2003, with the balance of $35.3 million due in 2004.

General Media is the parent company of Penthouse Magazines, based in New York.

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