THE precipitous fall in the share price of Fairfax Media is undermining its ability to raise capital from shareholders to help deal with its crippling $2.3 billion debt burden.

Fairfax shares hit record lows this week, driven lower by short selling as hedge funds and traders bet the company would be forced to tap investors for capital.

There is also speculation that Fairfax, due to release its half-year results on Monday, will need to write down the value of assets it bought at the top of the market in recent years, including the former Rural Press and Southern Cross radio assets. read full story