ACCOUNTS PAYABLE, NET AND ACCRUED EXPENSES

3 Months Ended

Jul. 31, 2013

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

(6) ACCOUNTS PAYABLE, NET AND ACCRUED EXPENSES

Accounts payable, net and accrued expenses consist of the following (in thousands):

	July 31, 2013		April 30, 2013
Publisher payables, net	$	70,582	$	75,257
Accrued expenses		3,872		1,897
Trade payables		2,302		3,275
Other		5,341		4,911
	$	82,097	$	85,340

Newsstand Distribution Services accounts payable are net of estimated magazine returns of $69,635,000 and $72,275,000 at July 31, 2013 and April 30, 2013.

The Company’s Media Services businesses operate with negative working capital ($16,900,000 at July 31, 2013) primarily through liquidity provided by one significant customer contract that expires in June 2014. The negative working capital of the Company’s Media Services businesses represents the net payment obligation due to this customer and certain other third parties. On May 26, 2013, the Company’s Newsstand Distribution Services business, which is part of the Company’s Media Services businesses, received notice that this customer contract would not be renewed upon its scheduled expiration in June 2014. The Company’s Newsstand Distribution Services business is evaluating its ability to pay the net payment obligation represented by the negative working capital (approximately $13,151,000 as of July 31, 2013, which amount will vary from period to period based on the level of magazine distribution for this customer and utilization of the Media Services Credit Facility (defined below)) upon expiration of the contract. The Company’s Newsstand Distribution Services business currently does not have sufficient capital to fund in full or refinance this obligation, and it may be unable to pay such amount and obtain other sources of working capital absent the Company obtaining additional debt or equity funding or raising capital through the sale of assets. Such additional funding or capital may not be available on acceptable terms or at all. Any failure to obtain capital to pay such obligation or to obtain other sources of working capital could have a material adverse effect on the Company’s business, financial condition and results of operations.