Lord Black In Payback U-Turn

03 June 2004

The former chairman and chief executive of Hollinger International, Lord Conrad Black, has met a judicial deadline for repayment to the company of $7.2 million (€5.87m; £3.91m).

Signalling a change in his legal strategy Black made the repayment of fees that were siphoned from Hollinger without its board's say so.

An internal investigation unearthed a number of allegedly unauthorized multi-million dollar payments made to Black and other former Hollinger executives, leading to a Delaware court's repayment order.

An unnamed source claims that Black had written to the court asking to use his $10.9m Hollinger options to offset the payment. This move, however, was blocked by the publishing group. It remains to be seen whether this form of payment will be allowed by the judge.

• Separately, Black-controlled Hollinger Incorporated, Hollinger International's majority shareholder, is waiting to see whether a US judge will enforce a further pay back of $16.5 million.

Data sourced from: Financial Times; additional content by WARC staff