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Forbes In Big Financial Trouble

First Posted: 07/28/11 10:28 AM ET Updated: 09/27/11 06:12 AM ET

Forbes

The Term Sheet: Fortune's deals blog Term Sheet:

FORTUNE -- The Forbes family has poked itself in the eye with its "capitalist tool."

Like many publishers, Forbes Media has struggled during the financial crisis. But according to nonpublic documents made available to Fortune, the company has been under more financial strain than previously believed. Forbes Media violated covenants on a revolving credit line that it took out in 2006, according to a letter sent to the company by J.P. Morgan. The loan, which was part of a series of transactions that allowed the Forbes family to cash out more than $100 million from the company, is due next July. Some lenders have been selling pieces of it at a discount from face value.

Read the whole story: The Term Sheet: Fortune's deals blog Term Sheet

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Filed by Jack Mirkinson  |