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DAILY NEWS BOARD OF DIRECTORS VOTES TO ACCEPT PURCHASE OFFER FROM CONRAD BLACK

 DAILY NEWS BOARD OF DIRECTORS VOTES TO ACCEPT PURCHASE OFFER
 FROM CONRAD BLACK
 NEW YORK, Aug. 17 /PRNewswire/ -- The Daily News board of directors voted today to accept an offer to purchase the newspaper by Conrad Black and to file the offer as part of its plan of reorganization in United States Bankruptcy Court.
 The offer, made on behalf of Black corporations, provides for an investment of approximately $75 million including assumption of a variety of liabilities. Consummation of the sale is contingent upon agreements with the newspaper's labor unions.
 "This is an important step forward in the process to establish a revitalized Daily News," said James Willse, editor and publisher of the paper. Willse said Black's offer was deemed by the News directors to be highly favorable to the company, its creditors and its employees.
 "It is our hope and expectation that negotiations will continue with our unions so that a deal can be concluded in time to avoid a cash crisis in the fall," said Willse.
 The Black proposal calls for purchase of all business assets of the Daily News for an aggregate cost of approximately $75 million. This includes:
 -- Payment of $22 million for administrative claims and creditors. Based on the News' estimate of allowed claims, general unsecured creditors will receive approximately a 40 percent recovery.
 -- Assumption of $8 million in liabilities for (a) vacation pay for continuing employees; (b) payments that were not made to the union- represented employees' pension and welfare funds due to the bankruptcy filing; (c) employees' 401(k) contributions prevented by the bankruptcy filing.
 -- Availability of up to $45 million to provide for immediate operating improvements, early retirement and severance programs, and working capital needs.
 Other highlights of the Black proposal:
 -- Construction of a color printing plant in New York City estimated to cost $200 million. The working environment in the News' existing Brooklyn printing plant will be improved pending the move to the new plant.
 -- Black must sign acceptable agreements with each union. Buyouts, early retirement and vacation pay will be paid to any severed union- represented employees, as determined in bargaining with each union.
 -- Black will advance up to $3 million in financing to avert any cash crisis, provided agreements have been reached with at least six of the unions that are members of the Allied Printing Trades Council, including the Drivers, Guild and Pressmen. This financing must be approved by the Bankruptcy Court.
 -- The News can "shop" for a better deal, but Black is to receive up to $1 million of expenses if the deal does not go through for specific reasons. This expense reimbursement provision must be approved by the court at a hearing to be held in September.
 Closing is expected to occur in November. The deal is subject to the execution of a definitive, written acquisition agreement and typical closing conditions, and to confirmation of a plan of reorganization by the United States Bankruptcy Court.
 The Daily News board of directors consists of Willse, General Counsel Jay Swardenski, Chief Financial Officer Larry Bloom, and independent members Richard Ravitch, David W. Burke, and Arthur Levitt Jr.
 -0- 8/17/92
 /CONTACT: John Campi of the Daily News, 212-210-1925/ CO: The Daily News; Conrad Black ST: New York IN: PUB SU:


GK-LR -- NY057 -- 0570 08/17/92 14:00 EDT
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Date:Aug 17, 1992
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