Philadelphia Inquirer living on borrowed time
Published by Avi Green on Friday, March 13, 2009 at 4:08 AM.
More money is going out of their company than in:
Philadelphia Newspapers, LLC, the parent company of the Philadelphia Inquirer and the Daily News, has estimated, in recent bankruptcy court filings, it has a much larger negative weekly cash flow than originally projected.When they were bought out from the now defunct Knight-Ridder syndicate almost 4 years ago, they had a chance to make improvements. They didn't. They kept taking a leftist stance. No wonder they're losing out.
The change in the cash flow numbers were included in a filing on Monday authorizing Philadelphia Newspapers to access cash collateral and continue operating. The arrangement allows the company to use its collateral from a $350 million loan from Citizen’s Bank to fund its operating costs.
The original cash collateral budget for Feb. 20 through March 6, predicted Philadelphia Newspapers would lose $1,695,402, for an average loss of $847,701 per week. The new budget, which provides for the company’s estimated expenditures from March 9 until March 20, shows a negative cash flow of $4,701,804, an average of $2,350,902 per week.
Labels: communications, msm foulness, Pennsylvania, United States
