CHICAGO, March 18 /PRNewswire-FirstCall/ -- Sun-Times Media Group, Inc. (the "Company") announced today settlements, negotiated and approved by the Special Committee of its Board of Directors (the "Special Committee"), with the Company's former President and Chief Operating Officer F. David Radler (including his wholly-owned company, North American Newspapers Ltd. f/k/a F.D. Radler Ltd.) and the publishing companies Horizon Publishing Company ("Horizon") and Bradford Publishing Company ("Bradford"). Under the settlements, the Company receives $63.4 million in new cash (i) to settle the Company's claims against Mr. Radler, Horizon, and Bradford; (ii) to settle potential additional claims against Mr. Radler related to the Special Committee's recent findings regarding backdated stock options; and (iii) to satisfy Horizon's and Bradford's debts to the Company. This increases the total proceeds received from Mr. Radler and the above entities since the launch of the Special Committee to approximately $72.03 million.
The $63.4 million in new cash breaks down as follows:
-- $21.18 million from Mr. Radler.
-- $23.3 million from North American Newspapers Ltd.
(an entity that Mr. Radler wholly owns).
-- $11.78 million from Horizon, $5.03 million of which represents early
repayment of an outstanding note due June 2007.
-- $7.15 million from Bradford, $5.3 million of which represents early
repayment of an outstanding interest-free note due July 2010. This
note is carried on the Company's books at December 31, 2006,
at $3.4 million.
The Company has received all of the above cash, except the $7.15 million Bradford amount, which under the settlement with Bradford must be paid no later than April 30, 2007. Subject to Bradford's compliance with the terms of its settlement agreement, these funds represent final resolution of all claims that the Company has against Mr. Radler and the above companies.
Gordon A. Paris, Chairman of the Special Committee, said: "Today the Company takes a significant step in obtaining restitution for the acts of the Company's controlling shareholders and former management. The settlements announced today -- combined with the previously -- announced settlements with the Company's former counsel Torys LLP, its former outside directors, and former officer Peter Y. Atkinson and the 2004 Delaware judgment against Conrad M. Black and Hollinger Inc. -- bring the total recoveries thus far to approximately $185 million."
The Special Committee continues to pursue the Company's claims in the U.S. District Court for the Northern District of Illinois against Conrad Black, Barbara A. Black, John A. Boultbee, Daniel W. Colson, Richard N. Perle, Hollinger Inc., Ravelston Corporation Limited, and Ravelston Management Inc.
About Sun-Times Media Group
Sun-Times Media Group, formerly known as Hollinger International Inc., is dedicated to being the premier source of local news and information for the greater Chicago area. Its media properties include the Chicago Sun-Times and Suntimes.com as well as newspapers and Web sites serving 120 communities across Chicago. Further information can be found at http://www.thesuntimesgroup.com/.
Cautionary Statement on Forward-Looking Statements
Certain statements made in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe," "anticipate," "expect," "estimate," "project," "will be," "will continue," "will likely result" or similar words or phrases. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed by Sun-Times Media Group with the Securities and Exchange Commission, including in its Forms 10-K and 10-Q. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward- looking statements as a prediction of actual results.
