New York- General Media Inc., which publishes the adult magazine Penthouse, wants to keep founder Robert Guccione as publisher of the magazine for at least the next decade and to pay him an annual salary of $1 million.
In an amendment to the company's reorganization plan filed with the U.S. Bankruptcy Court of the Southern District of New York, General Media included a consulting agreement that calls for Mr. Guccione to serve as publisher for 10 years after the company emerges from bankruptcy.
Unless terminated by Mr. Guccione, the contract will be automatically renewed for three 5-year terms. If the company wishes to oust Mr. Guccione, General Media will be held liable for his $1 million-a-year salary until the third 5-year term expires. The company, which filed for Chapter 11 protection last year, is hoping to emerge from bankruptcy by the end of the month.
The plan, which would also fully repay some $40 million in bond debt and $10 million to $12 million in unsecured debt, must be approved by the court before it can go into effect.
