By: E&P Staff
Chicago Sun-Times publishing company Hollinger International Inc. said Thursday that it had demanded and received the resignations from the board of directors of two representatives of Hollinger Inc., the Toronto-based holding company Conrad Black once used to control his newspaper empire.
Last week, Inc. announced it would seek court permission to countersue International in U.S. federal court in Chicago, alleging that it stripped Inc. of some former assets including the Daily Telegraph in London and two Canadian dailies. Inc. also said it would sue Black, another holding company Ravelston LLC and some former International executives.
At the time, International, which later this month is changing its name to Sun-Times Media Group, hinted it might boot the two Inc. representatives. Last winter, International agreed to seat two Inc. executives on its board. Inc. argued that it deserved the seats as International’s controlling stakeholder. Inc.’s principal asset is a 17.4% equity stake in International and a 66.8% voting stake.
International said Stanley M. Beck, chairman of the board of Inc., and Randall C. Benson, Inc.’s chief restructuring officer, on Thursday submitted their resignations, which were effective immediately.
International said that its chairman, Raymond G. H. Seitz, requested the resignations in a July 10 letter, citing “the clear conflict of interest afflicting your dual Board membership at Inc. and International.” International is suing Inc., Black and others for allegedly looting the publishing company of some $400 million through improper fees, insider contracts and other fraudulent payments.