UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): April 1, 2008
Playboy
Enterprises, Inc.
_______________________________________________
(Exact
name of registrant as specified in its charter)
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Delaware
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001-14790
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36-4249478
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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680
North Lake Shore Drive, Chicago, Illinois 60611
__________________________________________
(Address
of principal executive offices) (Zip Code)
Registrant’s
telephone number, including area code: (312) 751-8000
Not
applicable.
_____________________________________________________
(Former
name or former address, if changed since last report.)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Section
1—Registrant’s Business and Operations
Item
1.01. Entry into a Material Definitive Agreement.
On
April 1, 2008, Playboy Enterprises, Inc. and subsidiaries, or we, our or
us, completed the sale of the assets related to our Los Angeles production
facility to Broadcast Facilities, Inc., or Broadcast, for $12.0
million. As previously disclosed, our need for the facility has
significantly decreased since its inception, and we forecast that the need for
linear network transmission capacity will continue to decrease over the next
several years. We recorded a $1.5 million charge on assets held for
sale in 2007.
In
connection with the sale of such assets, we entered into an agreement to sublet
the entirety of the leased operating facility in Los Angeles, California to
Broadcast for a period equal to the remaining term of our
lease. Broadcast has agreed to assume all of our liabilities and
obligations under the existing lease of the facility as a part of the sublease
and has provided a letter of credit in the amount of $5.0 million to secure the
performance of its obligations under the sublease.
Also
in connection with the sale of such assets, we have assigned our rights and
obligations under our four domestic transponder agreements to Broadcast and we
have entered into a services agreement under which Broadcast is providing us
with certain satellite transmission services and other related services
(including compression, uplinking and downlinking) for our standard definition
cable channels. If we launch high definition cable channels during
the term of the services agreement, the buyer will also provide such services
for our high definition channels. Broadcast is also providing us with
a dedicated radio studio, dedicated office space and certain optional services
upon our request. The agreement includes other terms and conditions
which are standard for an agreement of this nature and continues for an initial
term of five years. After the initial term, we may renew the
agreement for an additional three-year term on substantially the same terms and
conditions.
The
foregoing description of the terms of the sublease agreement and the services
agreement is a summary and by its nature is incomplete. For further
information regarding the terms and conditions of these agreements, reference is
made to the complete text of the agreements, which will be filed as exhibits to
one of our future Quarterly Reports on Form 10-Q.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Date: April
1, 2008
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PLAYBOY
ENTERPRISES, INC.
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By:
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/s/
Linda Havard
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Linda
G. Havard
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Executive
Vice President,
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Finance
and Operations, and
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Chief
Financial Officer |