Conrad M. Black, who stepped down last year as chief executive of Hollinger International, could default on a $100,000 pledge he made November 3 to the New York Public Library when he and his wife served as co-chairs of the library’s annual Literary Lions benefit dinner. The New York Times reported January 17 that Black had asked his company to make the payment for him. Hollinger International is based in Chicago and publishes the Chicago Sun-Times, the London Daily Telegraph, and other newspapers.
However, Black has been involved in a dispute with the company, which claims he owes them $7.2 million in excessive compensation not approved by the board. The Hollinger board is reviewing its options in the light of Black’s January 18 surprise agreement to sell his controlling interest in the company to a pair of British media entrepreneurs for $178 million. Shareholders could file a lawsuit to block the sale or insist that the proceeds be placed in escrow until the dispute is resolved.
A spokesman for Black told the Times, “Lord Black informed the chairman of the library that there might be a delay in the contribution but that he would keep his commitment and intends to make it.” Black, a native of Canada, renounced his citizenship in 2001 to become a British lord.
Posted January 23, 2004.