The continuous losses have really crushed the financials of the company. The Q2'13 numbers indicated increase in EBITDA to $18.4 million, but that does not help as interest payouts kill the bottom-line totally. With an accumulated deficit of $331 million, and decreasing net margins, it is very difficult to get a debt restructuring on decent terms. The company continued its efforts on that, but there was no material progress. The net worth is negative, and there is no hope of immediate improvement in the bottom-line. The top line has been declining, albeit due to conscious efforts of the company to focus on more profitable segments. In Q2'13, the revenue declined to $69.0 million from $81 million in Q2'12. However, the net loss remained nearly the same at $10.3 million ($10.5 million in Q2'12). The interest payments increased by around $6 million to $27 million. For H1'13, the revenue declined to $131.5 million from $152 million in H1'12, and the net loss increased slightly to $20.9 million from $20.5 million in H1'12. The interest expense increased by around $11 million from $42 million to more than $53 million during the same period. The debt continued to rise, and increased from $504 million in Q1'13 to $544.1 million in Q2'13. This is an increase even on a yoy basis from around $482 million in Q2'12. The company needs to get the leverage under control, else the situation may worsen. It is important that the overall performance improves asap, otherwise debt restructuring is impossible. However, the social networking space is extremely competitive, and new players are making efforts to attract users. IZEA (IZEA), a company in the social media sponsorship / native advertising posted extremely good Q2 numbers recently. Without access to funds, it is difficult for FriendFinder to remain competitive. If Q2'13 was crucial, Q3'13 will be critical for FriendFinder. The outlook is deteriorating fast, and something special has to happen soon.