New York Times nearing bankruptcy

They need some real business leadership, and they need it now. The Grey Lady is going down for the count thanks to the internet, craigslist and the recession. Will there be a bailout?

BusinessInsider: As expected, the New York Times's business operations began burning cash this quarter (until now, they had remained cash-flow positive). The company has recently made several wise moves that have postponed the date at which it will run out of cash. But the situation is still critical.

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. There are also at least $1.5 billion of claims ahead of common shareholders of the company's assets should it file for bankruptcy. ...