HONG KONG -- Embattled Hong Kong pro-democracy newspaper Apple Daily will cease to operate on Friday unless authorities unfreeze assets linked to the arrest of its top editors and executives, according to a decision by the board of its parent company announced to employees.

According to the internal memo seen by Nikkei Asia, parent company Next Digital has appealed to Hong Kong's Security Bureau to release 18 million Hong Kong dollars ($2.32 million) of assets of three group companies that were frozen last week after the arrest of Apple's editor-in-chief, Next's chief executive and three other managers under the city's national security law.

Next's board is to reconvene on Friday, having given the government a deadline to respond by 11:59 p.m. Failure to secure the funds would mean Saturday morning's edition would be the paper's last.