Times Co. talking with lenders
NEW YORK - The New York Times Co. said yesterday it is in talks with lenders about debt payments coming due in the next two years, as the newspaper publisher struggles to weather continued declines in advertising sales.
The New York-based company, which owns The Boston Globe, says it will borrow up to $225 million against the value of its Manhattan headquarters to help repay debt due in May, and is evaluating assets for potential sale as it looks to boost liquidity.
"There is no doubt that 2009 will be among the most challenging years we have faced and more steps will be needed," Times Co. chief executive Janet L. Robinson said yesterday ahead of a media conference presentation.
Times Co. has reported that total revenue dropped 9.4 percent in October compared with the same month a year ago. Yesterday, Robinson said advertising trends declined further in November, particularly in the entertainment, real estate, and automotive advertising categories.
In addition to its flagship newspaper and the Globe, Times Co. owns the International Herald Tribune and several regional newspapers.
Last month, the company slashed its quarterly dividend by 74 percent. The move is expected to save $98 million a year.