Telegraph sale cash put in trust

Embattled media company Hollinger Inc is to place in trust some of the funds related to the sale of The Telegraph Group as part of its negotiations with regulators investigating the company’s former chief and Daily Telegraph boss, Conrad Black.

The US Securities and Exchange Commission has accused Lord Black and his deputy, David Radler, of fraud. The company is trying to resolve the charges.

Toronto-based Hollinger said it would deposit into escrow the proceeds from a special dividend and stock buyback related to the sale of the Telegraph business.

Hollinger controls Chicago-based Hollinger International Inc, which recently sold the Telegraph and is in the process of returning €392.6m to shareholders through a special dividend and stock buyback, representing proceeds from the sale.

The escrow account would be available for limited business purposes, including interest payments and dividend payments to shareholders.

Hollinger said the offer was contingent upon the company and the SEC agreeing on a termination date for the account if a settlement was not reached.