Oct
23
AEE Parent Files for Bankruptcy
October 23, 2009 | 1 Comment
The parent company of the Adult Entertainment Expo filed for bankruptcy Oct. 5 in order to restructure its ballooning debt. In its Chapter 11 filing Questex listed assets of $299 million against liabilities of $321 million. Questex acquired AEE when it purchased various divisions of Advanstar for $185 million in 2005, of which Home Entertainment Events — managers of the show — was a part of. According to the company, January’s AEE show — which has typically included a gay-adult “pavilion” — will take place as planned. Questex said that it plans to sell the company to the holders of its debt. The B2B trade company is experiencing a “severe contraction in liquidity” and is leaving its assets to existing lenders. Questex finds itself in a deep hole after it went on a spending spree acquiring other B2B trade companies since its inception in 2005. It is carrying $186 million in first-lien debt and $56 million in second-lien debt. It also owes $18.5 million to the principals of previously acquired companies. The company’s largest creditor is Wilmington Trust to which it owes $56.6 million in bank debt. Company officials are projecting a 50 percent earnings drop this year. A call seeking comment from AEE show director Deborah Brown went unreturned at post time. [XBIZ]
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I went to this expo last year and found nothing gay except for two tables promoting small DVD labels. GayVN did a special website for all the gay stuff going on, but there was absolutely nothing.
I did go to a pretty great party at the Blue Moon Resort and would consider going again just for that!