Hollinger sale cash freeze for Black

A US watchdog plans to block Lord Black from taking money from the sale of The Daily Telegraph until its investigation is complete.

The Securities & Exchange Commission wants Hollinger International, which owns the Telegraph titles, to set up a ring-fenced-account to hold money from a sale.

Hollinger is likely to be sold by June. Bids of £650m are thought to have been offered for the Telegraph titles.

The SEC is probing Hollinger investors' claims that Black and other top executives took up to £160m from the company, while inaccurate statements were filed to the SEC.

The US courts blocked Black's attempt to sell his controlling stake to the Barclay brothers in January for £260m.