[Steve1968LS2]

Originally Posted by XcYZ

Damn. I really hope that they can come out of this ok.

Were fine.. a simple 30-day reorg to re-align debt.

In fact our magazine - CP - is having great growth.

Officil company memo:

Today, we entered into an agreement with our lenders to reduce our debt, and provide us with additional capital. This restructuring program will significantly improve our cash flow and position us to grow our business and is great news for us all.

Our current management team will remain at the helm and are committed to this business plan. More importantly, none of our employees will lose their jobs as a result of this reorganization.

In order to permit the lenders to realign our debt with available collateral, we have filed a prepackaged reorganization through the bankruptcy court. In a prepack, the critical parties have agreed to the business plan and, as a result, the entire process takes about 30 days to complete. Source Interlink will emerge from this process as a private company with a solid balance sheet.

We intend to operate in a “business as usual” manner throughout the reorganization. Most of you will see little or no change in the way we operate. Our business partners will continue to receive the same level of service they have come to expect from Source.

Be assured that we will do all we can to keep you fully informed of developments relating to our reorganization process. Later today you will receive instructions on connecting to the web cast and get important contact information in the event you have questions during the reorganization period.

On behalf of our entire management team, I’d like to thank you for your continued support.