Conrad Black, chairman and chief executive of Hollinger International, is set to announce a “comprehensive reconstruction” of parts of its parent firm, according to press reports.
Hollinger Inc, which controls Hollinger International, publisher of the UK’s
Daily Telegraph and the
Chicago Sun-Times faces a potential funding shortfall after a profits warning in August (see
Financial Probe Impacts On Hollinger Profits).
However, Lord Black has held talks with a number of private equity firms (see Black Awaits New Investment At Hollinger) and told the Financial Times that in a month’s time, it will be clear that a default is “out of the question”. The reconstruction will cover parts of the business in particular need of attention.
The Hollinger board has come under pressure from investors dismayed at executive payments and the size of the company’s debt (see Telegraph Group Sees No Upturn In 2003). Lord Black is the controlling shareholder of Hollinger International, despite owning just 30% of its equity.
