'Daily News' directors back bid by Zuckerman

Click to follow
The Independent Online
DIRECTORS of the Daily News, the bankrupt New York tabloid owned by the estate of Robert Maxwell, gave their support yesterday to an dollars 18m purchase bid by the property developer and publisher Mortimer Zuckerman.

The newspaper's creditors, however, remain opposed to the bid, which would reimburse them less than half the amount promised by the rival bidder Conrad Black, who withdrew his offer last week in face of opposition from some Daily News employees. A bankruptcy court hearing, which will decide the final fate of the tabloid, was adjourned until next Wednesday.

Mr Zuckerman has now secured the support of eight of the tabloid's nine labour unions, demanding fewer contract concessions than did Mr Black. If the court approves his tentative bid, Mr Zuckerman would also provide dollars 3m in emergency funding and agree to build a new colour printing press for the newspaper at a cost of about dollars 200m.

Under the tentative deal, creditors would receive between 13 and 17 cents on the dollar amount they are owed, compared with 40 cents under the plan proposed by Mr Black, the publisher of the Daily Telegraph.