(6)	ACCOUNTS PAYABLE, NET AND ACCRUED EXPENSES

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

	January 31, 2014		April 30, 2013
Publisher payables, net	$	61,415	$	75,257
Accrued expenses		5,058		1,897
Trade payables		2,313		3,275
Other		4,816		4,911
	$	73,602	$	85,340

Newsstand Distribution Services accounts payable are net of estimated magazine returns to publishers of $67,078,000 and $72,275,000 at January 31, 2014 and April 30, 2013.

Kable Distribution operates with negative working capital (approximately $24,777,000 at January 31, 2014) and borrows funds under the Media Services Credit Facility (defined below) ($4,724,000 at January 31, 2014). The negative working capital of Kable Distribution represents the net payment obligation due to publisher clients and other third parties, which amounts will vary from period to period based on the level of magazine distribution. The negative working capital of Kable Distribution is calculated by deducting (a) the sum of the cash held by Kable Distribution plus the accounts receivable (net of estimated magazine returns to Kable Distribution) owed to Kable Distribution from wholesalers, retailers and other third parties from (b) the accounts payable (net of estimated magazine returns to publishers) owed by Kable Distribution to publisher clients and other third parties.

During the first quarter of 2014, Kable Distribution received notice that a significant customer contract providing Kable Distribution with a majority of its negative working capital liquidity would not be renewed upon its scheduled expiration in June 2014. Kable Distribution is evaluating its ability to pay, upon the expiration of this contract, the accounts payable owed by Kable Distribution to this significant customer. As of January 31, 2014, Kable Distribution had cash of approximately $16,956,000, accounts receivable (net of estimated magazine returns to Kable Distribution) of approximately $18,756,000, accounts payable (net of estimated magazine returns to publishers) of approximately $60,489,000 (of which approximately $39,465,000 was owed to this customer) and outstanding borrowings of $4,724,000 under the Media Services Credit Facility. Kable Distribution currently does not have sufficient capital or borrowing capacity to pay the accounts payable to this significant customer, and it will be unable to pay such amount 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 the funds needed to pay the accounts payable to this significant customer could have a material adverse effect on Kable Distribution’s business, financial condition and results of operations.