NEW YORK -- The New York Daily News is venturing into uncharted waters now that it has become the first major newspaper to seek refuge under Chapter 11 of the federal bankruptcy code.
On one hand, analysts and bankruptcy specialists say, the risky strategy of last resort could shield the News from the crumbling Maxwell publishing empire's overseas woes and give the paper breathing room to recover or seek a buyer.
On the other, the bankruptcy filing could sink the troubled tabloid by scaring away advertisers and newsprint suppliers.
Yesterday's Chapter 11 filing "is new ground for a high-profile, major newspaper property," said John S. Reidy, media analyst for Smith Barney, Harris Upham & Co. in New York. "This will not help them with advertisers."