Hollinger Inc.

Hollinger Inc.

August 22, 2008 17:28 ET

Hollinger Shares Delisted From the Toronto Stock Exchange

TORONTO, ONTARIO--(Marketwire - Aug. 22, 2008) - Hollinger Inc. (the "Company")(TSX:HLG.C)(TSX:HLG.PR.B) announced today that the Company's common shares and Series II preference shares (collectively, the "Shares") were delisted from the Toronto Stock Exchange (the "TSX") effective as of the close of business today.

The Shares have been suspended from trading since the issuance of a cease trade order by the Ontario Securities Commission on July 23, 2008. The cease trade order was issued as a result of the Company's determination, in the interests of reducing its costs for the benefit of its stakeholders, not to prepare and file annual audited financial statements and other annual disclosure documents in respect of the Company's financial year ended March 31, 2008. Consequently, following June 30, 2008, the Company has been in default of its continuous disclosure filing requirements under Canadian securities laws.

On July 21, 2008, the Ontario Superior Court of Justice (the "Court") issued an order authorizing the Company and Ernst & Young Inc., the Company's court-appointed Monitor (the "Monitor"), to consent to the issuance of the cease trade order and the delisting of the Shares. The Company and the Monitor have provided such consent.

Pursuant to proceedings under the Companies' Creditors Arrangement Act (Canada), the Company is 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 as part of their winding-up. 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 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 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