The New York Times Company is due to discuss its outlook for 2009, following yesterday’s bankruptcy of the Tribune Company, owner of 12 American newspapers including the Los Angeles Times and Baltimore Sun.
The company will talk at the UBS 36th Annual Global Media and Communications Conference in New York.
Chief executive Janet Robinson said that the worsening economy had made it particularly difficult for the paper to secure entertainment, real estate and automotive advertising.
‘There is no doubt that 2009 will be among the most challenging years we have faced,’she added.
CNN wonders how The New York Times Company, which now has a negative net worth, will deal with the $400 million debt repayment that is due in five months.
According to Bloomberg, it may have to re-mortgage its offices to meet the May deadline for repayment, borrowing as much as $225 million against its Manhattan headquarters.
James Folio, senior vice president of The New York Times Company, confirmed that the group had begun the process of re-mortgaging. He added that they were also looking at ‘other financial alternatives, including revolvers, public offerings or private placements.”
As The Economist reports, the company’s share price has fallen by almost 60% this year, with advertising revenues falling by 13.7% in the third quarter.