Ma'ariv Holdings Ltd. (TASE: MARV), the owner of Hebrew daily "Ma'ariv", today warned that the preparation of its financial report for 2010 shows a significant worsening of its cash flow and results in the fourth quarter and the year as a whole, compared with 2009. The company adds that, in the absence of additional financial sources, or another capital injection into the company, it will struggle to meet its financial commitments.
Ma'ariv added that it will take immediate major streamlining measures, including salary cuts. The board of directors instructed management to consider additional measures to improve the cash flow in the immediate term.
Ma'ariv said that it is implementing several strategic measures, which it believes will improve the company's operating results and greatly improve its cash flow in the long term, but cautions that there is no assurance that streamlining and strategic measures will bring about improvement.
Zaki Rakib recently completed his acquisition of a major stake in the publishing company.
Published by Globes [online], Israel business news - www.globes-online.com - on March 9, 2011
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