Black quits early at Hollinger

CONRAD Black has resigned as chief executive of Hollinger International earlier than expected, resulting in the publisher missing the deadline to file third-quarter figures with the Securities and Exchange Commission.

The company, owner of the Telegraph newspapers, said that because Lord Black's resignation was effective yesterday - two days earlier than planned - he was unable to sign off results for the September quarter.

Under the Sarbanes-Oxley legislation, enacted following corporate accounts scandals, chiefs of US-listed companies are required to certify sworn statements vouching for the accuracy of their financial statements. Certifying erroneous accounts carries a jail term of up to 20 years.

Hollinger also confirmed it is being investigated by the SEC. The market watchdog has subpoenaed the company and its audit committee.

The company said it planned to file its results with the SEC as soon as certain disclosures around unauthorised payments to Black and other executives were completed.

Hollinger originally delayed its filing from last Friday, saying an internal investigation had thrown up inaccuracies in prior filings that had to be resolved. Its three-day extension expired last night.

The inaccuracies resulted from non-compete fees Lord Black and other executives received after the sale of Canadian newspapers in 2000. Some of the fees had not been disclosed, the company said in its filing for an extension.

Failure to meet the deadline suggests Hollinger's internal inquiry has found it more time-consuming to resolve the problem than its audit committee had expected.

The inquiry began after minority shareholder Tweedy Browne raised questions about $73.7m (£42.6m) paid to Lord Black and other executives as non-compete fees.

Former Hollinger president David Radler, who quit on Monday, said he would co-operate with the SEC. A spokesman for Hollinger also said the company would co-operate.

'I can't believe they'll ask for anything that we haven't already produced for the [internal inquiry],' Radler added. 'I don't know what I'm supposed to do. I don't have a clue.'

The Ontario Securities Commission, Canada's leading stock market regulator, would not say whether it was formally investigating Hollinger. It was making 'appropriate inquiries' in cooperation with the SEC.

Richard Breedon, a former SEC chairman who is advising Hollinger's special committee investigating pay and other questionable activities, said it was looking at issues beyond those raised by Tweedy Browne.

Hollinger has asked investment bank Lazards to look at the sale of all or part of its empire, which also includes the Chicago Sun-Times, the Jerusalem Post and The Spectator magazine.