New York Times Co. to borrow against building

The New York Times Co. plans to borrow up to €175 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 New York Times reported on its website yesterday.

The company has retained Cushman & Wakefield, the real estate firm, to act as its agent to secure financing, either in the form of a mortgage or a sale-leaseback arrangement, the paper said, quoting chief financial officer James Follo.

The Times is looking for ways to save money so it can pay off more than 780,000 in debt.

The company, which also owns The Boston Globe and other papers around the US, is also grappling with a severe decline in advertising revenue. Expense cutting is important to the Times, which also slashed its dividend by nearly 75 per cent recently and might sell parts of the company as it tries to stay afloat amid an advertising decline made worse by the financial crisis.

The Times did not immediately return a call seeking comment.

The New York Times Company is a diversified media company, including newspapers, internet businesses, television and radio stations, and investments in paper mills and other investments.

During the year ended December 31, 2007, the company operated in two segments: News Media Group and the About Group.