New York Times CASH FLOW SQUEEZE.... Will Borrow $225 MILLION

by **J The Kidd** Mon Dec 08, 2008 3:29 pm

The New York Times Company plans to borrow up to $225 million
against its mid-Manhattan headquarters building, to ease a potential
cash flow squeeze as the company grapples with tighter credit and
shrinking profits.

The company has two revolving lines of credit, each with a ceiling
of $400 million, roughly the amount outstanding on the two combined.
One of those lines is set to expire in May, and finding a replacement
would be difficult given the economic climate and the company’s
worsening finances. Analysts have said for months that selling or
borrowing against assets would be the company’s best option for
averting a cash flow problem next year.

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