The management of the Denver Symphony announced Tuesday it will file for bankruptcy if musicians do not accept some pay and benefit cuts by Friday noon. The proposed cuts, aimed at reducing a projected $650,000 deficit for 1988-89, were rejected by the musicians.

The musicians accused the board of violating their three-year contract, signed in June 1987, and voted unanimously to form a new orchestra, "Orchestra Colorado." Musicians' lawyers have filed for non-profit status for the ensemble and will begin negotiating with potential donors, conductors and concert sites across the state.