P.M. BRIEFING : Murdoch’s Stock Drops Sharply

Fears about the ability of Rupert Murdoch’s News Corp. to pay its debts and an apparent delay in securing refinancing pushed the media giant’s stock sharply lower today.

The Sydney-based company, with an international empire that includes the 20th Century Fox film studios, Fox Broadcasting network and TV Guide magazine in the United States and one-third of Britain’s newspapers, has yet to reach agreement with all of its 150 lender banks on the refinancing package, including a new $600-million credit.

The stock sank 56 cents, or almost 15%, to a low of $3.27 after the company disclosed that it might be insolvent by June if it does not secure an $8-billion refinancing package. At the close of trading, the stock was at $3.31.

In morning trading on the New York Stock Exchange, News Corp.’s U.S. shares were at $6.75, off 62.5 cents.