help with creating new log file

Hello,

The problem I am having now is... daily log file (xxxx.0228) exceeds it's max limit, stops logging and brings the daemon down. It won't start the daemon untill a new log file is created which happens at midnight. Once new daily log file starts, it brings up the daemon back up and starts logging again. So I need to create a script that will monitor daily logs lets say do a check every 5 mins. and if they are about to exceed the log file size limit, maybe compress the old daily log file and create a new daily log file or just create a new log file without compressing the old one and maybe send out an e-mail stating that a log file has exceeded it's limit and a new one has been created for the rest of the day. Btw I use ksh
Someone suggested logrotate.. would that help?
Any suggestions would be greatly appreciated.

Thanks!