Hollinger 'approved Black payments'

LAWYERS for Lord Black challenged claims that he had received millions in unauthorised payments from his Hollinger International company.

They told a Delaware court that the payments were approved by an executive committee and later by the board.

Black is also defending his proposed sale of the Daily and Sunday Telegraph newspapers to Sir David and Sir Frederick Barclay. He is due to give evidence in court today.

Lawyers involved in the case said Black's testimony would be crucial to the future of Hollinger International, from which he was removed over allegations that he and his associates improperly enriched themselves at shareholders' expense. Black denies the allegations.

One issue before the court is whether Black can sell control of HI's assets without the approval of its directors and a majority of its shareholders.

Yesterday, the court heard from a second HI director, former US ambassador Raymond Seitz, who testified that Black and a colleague signed off on $16.6m (£8.8m) payments to themselves. Seitz called the payments 'a classic example of self dealing'.

On Wednesday, HI's interim chief executive Gordon Paris said Black had been negotiating the sale to the Barclays without telling the HI board.

The case continues.