Hollinger Inc.

Hollinger Inc.

November 16, 2008 17:33 ET

Hollinger Inc.: Settlement of Shareholder Class Action Receives Preliminary Approval of Ontario Court

TORONTO, ONTARIO--(Marketwire - Nov. 16, 2008) - Hollinger Inc. ("Hollinger") (TSX:HLG.C)(TSX:HLG.PR.B) announced today that the Ontario Superior Court of Justice (the "Ontario Court") issued an order on November 14, 2008 granting its preliminary approval of a settlement (the "Settlement") among certain parties to a class action lawsuit initiated by certain shareholders of Hollinger and Sun-Times Media Group, Inc. ("Sun-Times"). Proceedings in the class action have been stayed until further order of the Ontario Court.

The order will be set aside if the Settlement is not subsequently approved by all applicable courts or if the Settlement is terminated by the settling defendants. A final hearing to approve the Settlement will be scheduled by the Ontario Court on a date not less than 30 days following a final approval hearing in the United States District Court for the Northern District of Illinois.

The settling defendants include Hollinger, Sun-Times and KPMG LLP (Canada), among others. Torys LLP is not a party to the Settlement. Under the Settlement, certain insurers of Hollinger will pay US$30 million and KPMG LLP (Canada) and KPMG LLP (U.S.) will collectively pay US$7.5 million into a settlement fund.

Hollinger and its subsidiaries, Sugra Ltd. and 4322525 Canada Inc., are currently subject to proceedings in Canada under the Companies' Creditors Arrangement Act (Canada) and in the United States under Chapter 15 of the U.S. Bankruptcy Code.

The securities of Hollinger are subject to a cease trade order issued by the Ontario Securities Commission on July 23, 2008. Hollinger's common shares and Series II preference shares were delisted from the Toronto Stock Exchange on August 22, 2008.

Contact Information

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