Hollinger Inc.

Hollinger Inc.

June 16, 2008 16:21 ET

Hollinger Inc.: Annual Disclosure Documents not to be Filed

TORONTO, ONTARIO--(Marketwire - June 16, 2008) - Hollinger Inc. (the "Company") (TSX:HLG.C)(TSX:HLG.PR.B) announced today that, in the interests of reducing its costs for the benefit of its stakeholders, the Company will not be preparing and filing annual audited financial statements and other annual disclosure documents required by Canadian securities laws in respect of the Company's financial year ended March 31, 2008. Consequently, following June 30, 2008, the Company will be in default of its continuous disclosure filing requirements under Canadian securities laws.

Ernst & Young Inc., the court-appointed Monitor of the Company (the "Monitor"), has advised the Company that on a pure financial analysis the Company should take whatever steps are available to minimize or eliminate these costs while being responsive to the Ontario Securities Commission.

The Company is in discussions with the Ontario Securities Commission, its principal Canadian securities regulatory authority, concerning (i) the nature of ongoing disclosure that will be provided by the Company, which disclosure will be focused primarily on the Company's cash situation, and (ii) the terms of any cease trading order which may be made by Canadian securities regulators as a result of the Company's imminent continuous disclosure filing default. The Company has also notified the Toronto Stock Exchange, the exchange on which its common and Series II preference shares are listed, of its decision not to incur the expense of preparing and making continuous disclosure filings in respect of its March 31, 2008 year end.

Under the terms of the May 21, 2008 order issued pursuant to proceedings under the Companies' Creditors Arrangement Act (Canada) (the "CCAA"), the Company is in the process of conducting a claims process for the Company and its subsidiaries, Sugra Ltd. and 4322525 Canada Inc. (the "Applicants"), and will also do so for its non-Applicant subsidiaries. Also, under the May 21, 2008 CCAA order, retired justice John D. Ground has been appointed as Litigation Trustee to administer the Company's litigation assets, assisted by an Advisory Committee, and under the supervision of the Monitor and the CCAA court.

Preliminary estimates prepared by the Company, in conjunction with the Monitor, indicate that there is a significant risk that there will not be adequate recoveries from the Company's litigation assets for there to be any residual value for the Series II preference or common shareholders of the Company.

This media release contains forward-looking information. The words "anticipates", "believes", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedules", "should", "will", "would" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The forward-looking information reflects management's current beliefs and is based on information currently available to the Company's management. The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from results anticipated by the forward-looking information. The factors which could cause results or events to differ from current expectations include, but are not limited to: the outcome of litigation, the CCAA process, regulatory and other proceedings; the actions of Canadian securities regulators in response to the Company going into default under its continuous disclosure obligations; and other factors, many of which are beyond the control of the Company. For additional information with respect to the Company's risk factors, reference should be made to the Company's continuous disclosure materials filed with Canadian securities regulatory authorities.

All forward-looking information in this media release is qualified in its entirety by the above cautionary statements and, except as required by law, the Company undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise.

Contact Information

  • Media contact:
    Hollinger Inc.
    William E. Aziz
    Chief Restructuring Officer
    (416) 363-8721 ext. 262
    Email: baziz@hollingerinc.com