New York Times to mortgage its building to cover cash needs

Remember all those people who took out home equity loans on their homes to finance a lifestyle beyond their income? Well, the New York Times Company  is trying to pull off the corporate equivalent.  The Gray Lady announces today:The New York Times Company plans to borrow up to $225 million against its mid-Manhattan headquarters building, to ease a potential cash flow squeeze as the company grapples with tighter credit and shrinking profits.The company has so far been unable to cut costs fast enough to equal the pace of its revenue nosedive. It requires loans to be able to meet its expenses, and must replace an expiring  revolving line of credit (essentially, unsecured borrowing based on faith in the company's ability to pay it back) next May in the amount of $200 million. Because there is little hope that banks would renew the unsecured loan, the company is now planning to mortgage its ownership position in the new skyscraper it occupies in Manhattan. Richard...(Read Full Post)