Hollinger seeks preliminary injunction to keep assets away from creditors

By Caroline Salls

Pittsburgh, Aug. 2 - Hollinger Inc. is seeking a preliminary injunction in its Chapter 15 bankruptcy case to keep some noteholders from taking over the company's assets and standing in the way of the formulation of a Canadian Companies' Creditors Arrangement Act bankruptcy plan, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Hollinger has already been granted a temporary restraining order in the Chapter 15 case and a 30-day stay of proceedings by the Ontario Superior Court of Justice.

"Unless a restraining order is issued, it appears to the court that there is a material risk that the [Hollinger] assets located in the United States could be subject to attack by creditors," the temporary restraining order ruling said.

A hearing on the subsequent preliminary injunction is scheduled for Aug. 10.

According to the motion, the "limited breathing period" the company is requesting will allow it to implement a strategy for its Sun Times Media Group, Inc. shares that will allow it to maximize creditor recovery, and to negotiate with claimants that will come forward in response to the CCAA proceedings in the view of ultimately formulating a bankruptcy plan.

Hollinger said in the filing that wrongful acts initiated by parent Ravelston Corp. and others have left the company with only one major asset, its substantial equity interests in Sun Times Media Group.

Hollinger said it is also subject to a series of lawsuits filed in the United States and Canada by shareholders and various regulatory authorities, and the lawsuits and Ravelston actions have left Hollinger insolvent.

Toronto-based Hollinger's principal asset is Hollinger International, which is a newspaper publisher that owns the Chicago Sun-Times. Hollinger filed its CCAA proceedings and Chapter 15 bankruptcy on Aug. 1. Its Chapter 15 case number is 07-11029.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.