Black sells down Hollinger Inc stake
BELEAGUERED Press baron Lord Black has sold 875,759 non-voting preference shares of Hollinger Inc. That was his entire holding of the share class, comprising 23%.
He still has more than 78% of common stock in the company but has been selling shares to cover loans he received from the Canadian company.
Black is suing his former company Hollinger International, publisher of the Daily Telegraph, for $170m (£92m).
His private holding company Ravelston filed the suit in Canada, claiming HI cut off its management fees. It also claimed $150m damages.
The lawsuit is the latest of several pending between Black, other shareholders and the HI board. It alleges that his detractors in HI plotted to separate it from his Canadian company, Hollinger Inc.
HI cut off the management fees last year after uncovering millions of dollars in allegedly unauthorised payments to Black and other executives.
Hollinger Inc, was using the fees paid to Ravelston to service its debts. It missed a £3.8m interest payment on 1 March.
Black hoped to solve its problems by selling the Telegraph newspapers to brothers Sir David and Sir Frederick Barclay, but this was overturned by the Delaware courts.
