Hollinger to cooperate in case against Conrad Black

Hollinger Inc, a Canadian holding company formerly controlled by ousted media magnate Conrad Black, has signed a deal to cooperate with the US Attorney’s Office in its criminal prosecution of the former Daily Telegraph boss and several others.

In exchange, the US Attorney’s office has agreed not to prosecute Hollinger for any crimes committed by its former officers, directors or employees relating to the £8.8m (€12.9m) in non-compete payments diverted from Hollinger International Inc to Hollinger, as long as Hollinger abides by the terms of the cooperation agreement.

Hollinger has acknowledged that one or more of its former officers, directors or employees acted illegally in connection with the non-compete payments that Hollinger received and that it is responsible for the repayment of that money, which was repaid to Hollinger International Inc with interest in 2004 pursuant to a judgment in the Delaware Court of Chancery.

“This cooperation agreement is an important and positive step for Hollinger Inc, since it provides a clear distinction between the company and the actions of its former directors and officers,” Randy Benson, Hollinger Inc’s chief restructuring officer, said in a statement today.

“Our shareholders and other stakeholders will welcome that clarity as well as the certainty that the company will not be prosecuted by the US government,” Benson said.

“We intend to continue to cooperate fully with the Unites States Attorney’s Office.”

Hollinger Inc said the deal also covered its cooperation in the investigation and prosecution of former executives Jack Boultbee, Peter Atkinson and Mark Kipnis, along with Ravelston, the private Canadian corporation that Black had used to control Hollinger Inc.

Black was ousted from the company following accusations that he and associates looted millions of dollars from its coffers. He has denied any wrongdoing and is fighting criminal charges in the US. He is due to go on trial in Chicago next March on fraud and racketeering charges.

Hollinger’s principal asset is its about 66.8% voting and 17.4% equity interest in Hollinger International, a newspaper publisher with assets which include the Chicago Sun-Times and a large number of community newspapers in the Chicago area.