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Apr 21 2009 10:12am EDT
Bankruptcy for the New York Times?
The prospect of bankruptcy fluttered around the Times's announcement of a first quarter operating loss today.
Henry Blodget points out:
At the current rate of cash consumption, assuming no one-time expenses (highly unlikely), we estimate that the company will max out its current borrowing capacity in 4 quarters. At that point, it will owe about $1.2 billion in debt. This estimate does not include any payments on the company's $600+ million pension and benefit obligation, of which $181 million is due next year.
The bottom line: The New York Times Company remains on the brink of insolvency.
If, or when, the Times goes, so goes the rest of the newspaper industry.
This is proof, once again, that public ownership has been a disaster for the newspaper industry.
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