14 DAY TRIAL // Hugh Hefner, the man who literally made glamour modeling what it is today, has just 16 months to raise $115 million to cover a massive debt – and he’s considering selling the Mansion to get that money.
According to a Wall Street analyst cited by the New York Post, Hef’s finances are really tangled, with the mogul incurring the above-mentioned debt 6 months ago.
Even worse, he only has until March 2012 to pay it off, which is why he’s considering putting the Mansion on the market to get the money, together with all the artworks he possesses.
Granted, this is not the first time that rumors start to circulate about how the empire is coming apart but, says the Post, this time it’s the real deal.
“The 84-year old founder and chief creative officer of Playboy Enterprises must raise $115 million in 16 months to pay investors who plan to demand payment of their convertible bonds on March 15, 2012, the company said yesterday,” the Post writes.
“Hefner, who controls the company with 70 percent of its voting stock, was said to have ‘profound concern’ about covering debt that he took on six years ago,” says the same media outlet.
One solution out of the crisis would be to sell the Mansion and all of Hefner’s artwork collected throughout the years – and hope that the money will be enough to cover the huge debt.
“The company, which currently has $26.5 million in cash, yesterday reported $9.9 million in operating cash flows in nine months, hardly enough to build reserves,” the Post also says.
As if money problems weren’t enough, word in the media also has it that Hefner is forced to deal with an attempted buyout from a similar magazine, which has already approached him with an offer.
In August last year, Hefner unloaded his personal mansion, the one situated next to the Mansion, for $18 million, after going up for sale earlier that year with a starting price of $29 million.