DAILY NEWS FILES CHAPTER 11 PETITION
DAILY NEWS FILES CHAPTER 11 PETITION NEW YORK, Dec. 5 /PRNewswire/ -- The Daily News today filed a
petition for protection under Chapter 11 of the U.S. bankruptcy laws.
The action was taken to protect the Daily News against the uncertainties involving the Maxwell family's creditors in England and from a capital squeeze due to the debt problems of the family owned businesses. Although the News is ahead of its 1991 business goals, the paper requires a continuing short-term investment of funds to continue operations and achieve consistent profitability. The present situation has cut off the owners' ability to assure that money. The board of directors decided that this is a necessary step to help ensure the News' survival and ultimate prosperity. It provides time to reorganize the business and emphasizes the continued commitment to the future of the paper during these difficult times. Under Chapter 11 protection, the Daily News will continue to operate under present management, which will draw up a reorganized business plan. It is expected that a committee of creditors, which management hopes will include representatives of the paper's labor unions, will be created to oversee the reorganization process. Daily News pension funds are not affected by today's action or by problems involving Maxwell business pension funds in the United Kingdom. Today's filing was made by Maxwell Newspapers, Inc., the privately held U.S. company that owns the News. Two Daily News executives were added today to the Maxwell Newspapers, Inc. board of directors. They are James P. Willse, editor and senior vice president, and Larry L. Bloom, chief financial officer and senior vice president. -0- 12/5/91 /CONTACT: John Campi of the Daily News, 212-210-1925/ CO: The Daily News ST: New York IN: PUB SU: BCY SM-CK -- NY066 -- 9713 12/05/91 13:25 EST
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|Date:||Dec 5, 1991|
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