Black quits company behind troubled media empire
Former owner of the Daily Telegraph Conrad Black and long-time business partner David Radler have resigned as officers and directors of Ravelston Corporation, the private holding company behind the troubled Hollinger media empire.
A lawyer for Ravelston told Ontario Superior Court in Canada about the resignations as the firm sought bankruptcy-court protection from creditors.
According to an affidavit filed by Black’s long-time deputy, Peter White, Ravelston Corp and subsidiary Ravelston Management Inc are seeking bankruptcy protection because they are insolvent and faced with “an immediate financial crisis”.
White said Ravelston has been drained of cash because it no longer receives multi-million-dollar management fees from its subsidiaries Hollinger Inc and Chicago-based newspaper operator Hollinger International Inc.
Most of the fees were halted in 2003 after a special committee of Hollinger International directors alleged that Black and a team of executives had improperly received more than $32m (€24.4m) in payments.
Since then, the executives have faced additional allegations of securities fraud by United States regulators and they are also under criminal investigation by the US Justice Department.
The Ontario Securities Commission has also restricted the ability of various individuals and companies, including Black, the two Hollingers and Ravelston, from buying or selling shares of the various companies.
On Tuesday, the Delaware Supreme Court upheld a scathing ruling brought down more than a year ago against Black.
The court also ruled against an appeal by Toronto-based Hollinger Inc, the holding company at the centre of Black’s web of corporate holdings.
The ruling brought down on February 26, 2004, by Chancery Court Judge Leo Strine blocked Black’s plan to sell control of his publishing empire to the Barclay brothers of Britain.
Strine also found that Black had consistently violated his duties to Hollinger International Inc, the US-based operating company he controlled, which at the time owned the since-sold London Daily Telegraph and Jerusalem Post, as well as the Chicago Sun-Times.
