NY TImes running on fumes

10 Nov

As a citizen who relies on The Times for news I find the prospect of their bankruptcy a terrifying prospect.  I am amazed at the shortness of the timeframe here.

The New York Times Company’s 10Q (NYT) contains more details on the company’s cash crunch.

Specifically, the company must deliver $400 million to lenders in May of 2009, six months from now.  The company has only $46 million of cash on hand, and its operations will likely begin consuming this meager balance this quarter or next.  The company has been shut out of the commercial paper market, but has a $366 million short-term credit line remaining that it entered into several years ago, when the industry was strong. It has not yet drawn this cash down, and given the current environment and the trends at the company, we would not take for granted that it will be able to do so.

NYTimes building in February NYTimes building in February

Tags: | | | | | | | | |

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: