Hollinger late with £65m payment

HOLLINGER Inc has failed to make a payment on a $120m (£64.8m) bond, and may have to seek short-term financing from Hollinger International to meet its commitments.

Hollinger Inc is claiming it has not technically defaulted because it still has 30 days' grace in which to pay the $7.4m interest due.

The company said it was examining available options to meet the payment. The bonds are secured on its stake in Hollinger International.

Last week, Hollinger International won a court case against Press baron Lord Black which put paid to his plans for a quick sale of his newspaper interests - including the Daily and Sunday Telegraph - to the Barclay brothers.

In a ruling last week, Delaware Judge Leo Strine refuted Hollinger Inc's argument that its planned sale of Hollinger International to the Barclays was the only way it could meet the bond payment, adding Black and associate David Radler must 'live up to their substantial obligations to Hollinger Inc'.

As the bidding for the media assets of Hollinger International restarted yesterday, the race appeared wide open. Those in the running include Daily Mail and General Trust, which also owns the London Evening Standard and several websites including This Is Money, Daily Express owner Richard Desmond, and private equity groups 3i, Apax and Candover.