Business and Finance

NEW YORK–The New York Times Co. said yesterday it is in talks with lenders about debt payments due in the next two years, as the newspaper publisher struggles to weather continued declines in advertising sales.

The company says it will borrow up to $225 million (U.S.) 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," chief executive officer Janet Robinson said yesterday ahead of a press conference.

The newspaper industry as a whole is facing hefty debt and declining ad sales as more readers flock to the Internet. On Monday, media company Tribune Co. filed for bankruptcy to cope with a crushing $13 billion in debt.

The Times says total revenue dropped 9.4 per cent 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 free car insurance quotes.

In addition to its flagship newspaper, The New York Times, the company owns The Boston Globe, the International Herald Tribune and several regional newspapers.

Last month, the company slashed its quarterly dividend by 74 per cent. The move is expected to save $98 million a year but will curtail the income of its controlling shareholders, the Sulzberger family, who together own about 19 per cent of the company.

Company shares fell 50 cents, or 6.37 per cent, to close at $7.35 yesterday. The stock has lost 64 per cent of its value since trading at a 52-week high of $21.14 in April.

Associated Press

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