Lord Black has repaid around $30 million of unauthorised ‘non-compete’ payments to Hollinger International, the newspaper group he chaired until last year.
The payments, which Black received over several years, were ordered to be repaid by a court last month after he lost an appeal against an earlier ruling. However, another appeal has been launched and if Black is successful, the money will be returned to him.
The non-compete payments were made following the sale of several American newspapers from 1999 to 2001 to rival groups. Hollinger alleged that payments made to Black had not been authorised by its audit committee or the board of directors.
Approximately $7.2 million was paid directly to Black, he denies acting improperly.
The move comes as a Delaware judge prepares to rule on whether Black can block the sale of the Daily Telegraph and its sister Sunday title later this month.
Hollinger’s independent directors sold the newspapers to the Barclay brothers for £665 million after a fiercely contested auction, but Black argues the deal needs his approval (see Black Launches Legal Bid To Scupper Telegraph Sale). He still holds a controlling stake in Hollinger through his private company Ravelston.
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