Conrad Black’s Hollinger Inc is close to securing a $15 million cash injection from private equity group Bain Capital, according to weekend reports.
The Observer claims that the companies are in exclusive negotiations that should see Bain acquiring a holding in the next month.
As yet, neither party has commented on the supposed deal but Hollinger, which owes interest on debts of $120 million, was known to be courting venture capitalists in a bid to get its finances on an even keel (see Black Awaits New Investment At Hollinger).
Last week, Black announced plans for a “comprehensive reconstruction” at Hollinger (see Hollinger Chief Plans Reconstruction), which publishes a number of prominent newspapers including the Daily Telegraph, the Chicago Sun-Times and the Jerusalem Post.
The group’s directors have attracted criticism from shareholders for receiving management fees through Black’s control vehicle, Ravelston Management. US investor Tweedy Browne has launched an investigation (see Financial Probe Impacts On Hollinger Profits) and there is a strong possibility that these fees will be capped in future.
