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DAILY NEWS TO ASK FOR WAGE CUT IF UNIONS DON'T AGREE ON BUYER

 DAILY NEWS TO ASK FOR WAGE CUT IF UNIONS DON'T AGREE ON BUYER
 NEW YORK, Aug. 31 /PRNewswire/ -- The Daily News plans to ask for court approval of a 10 percent across-the-board wage cut if the paper's unions cannot agree on a new buyer in the next two weeks.
 Publisher James P. Willse said the reduction in wages and benefits would be necessary to prevent the paper from running out of cash.
 Prospective buyers Conrad Black and Mortimer Zuckerman have offered interim financing to see the paper through the last quarter. But both have made their offer contingent upon agreements with the paper's unions, which have not been able to agree on a buyer.
 In papers to be filed in U.S. Bankruptcy Court, the News says that in the absence of a timely deal, a 13-week wage cut effective Sept. 13 is essential to protect the paper's financial stability. The 13-week cut would affect every News employee.
 The News has a $10 million line of credit, but most of it is committed in letters of credit to newsprint and other suppliers.
 "Without this wage reduction, we will run out of cash in November, and we risk being in default on our debtor-in-possession financing long before that," Willse said in a letter to the staff.
 The paper will ask Judge Tina Brozman to consider its request on Sept. 11, the date on which the court has previously agreed consider matters related to the Conrad Black purchase offer approved on Aug. 17 by The News board of directors.
 "It is our hope that the logjam will be broken by then. If not, we must press forward with this painful but necessary measure," Willie said.
 -0- 8/31/92
 /CONTACT: John Camp of The Daily News, 212-210-1925/ CO: Daily News ST: New York IN: PUB SU:


LD-TM -- NY078 -- 5133 08/31/92 17:12 EDT
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Publication:PR Newswire
Date:Aug 31, 1992
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