U.S. Postal Service Loses More Than $5B for Q3 2012

The Postal Service was forced to default on a $5.5 billion prefunding payment for retiree health benefits on Aug. 1, due to insufficient cash resources. It is also set to default on a second similar payment of $5.6 billion due by Sept. 30.

Current projections show very low levels of cash, and no remaining borrowing capacity, at the end of the current fiscal year and through October 2012.