Bad news continues to flood out of Apple Computer Inc, and it now says it has had to go into talks with its lenders about finding alternative sources of financing. As well as squelching the dividend (CI2851), it says it has extended the payment period for some of its vendors to conserve cash. About $400m in short term loans are scheduled to come due in March and April at its Apple Japan and Apple Netherlands subsidiaries. Apple warned its cost of funds are likely to increase this year, and that it may have to pledge collateral or agree to more stringent terms to obtain the financing. Meantime new chief executive Gilbert Amelio is being handsomely paid to clear up the mess – the New York Times reckons he gets at least $10m a year for the next five years, and $10m if Apple is bought within a year.
