CHICAGO, August 31 /CNW/ - Sun-Times Media Group, Inc. (NYSE: SVN) (the
"Company") announced that the Ontario Superior Court of Justice issued an
order today in the Hollinger Inc. ("Hollinger") Companies' Creditors
Arrangement Act (Canada) reorganization proceedings, with the consent of all
parties, that extends the stay of proceedings against Hollinger to September
28, 2007. In the intervening time, Hollinger and certain creditors of
Hollinger, including the Company, have been directed to conduct good faith
settlement negotiations, including with the mediation assistance of the court.
The court's order also contains certain corporate governance provisions
with respect to the Company and Hollinger. Specifically, until September 21,
2007, Hollinger and its subsidiary, 4322525 Canada Inc., are prohibited from
exercising any right to vote or act by written consent with respect to shares
of common stock of the Company beneficially held by Hollinger, provided that
the Company has not taken any actions that are inconsistent with Hollinger
Inc.'s changes to the Company's Board of Directors made on July 31, 2007.
The court order also provides that, until September 21, 2007, Wesley
Voorheis, William Aziz and Edward Hannah (the "Hollinger Directors") will not
attend any meeting of the Company's Board of Directors or its committees,
unless the Hollinger Directors have received a written opinion by independent
legal counsel that attending such meeting and/or voting at such meeting is
required by their fiduciary duties to the Company's stockholders, other than
solely to Hollinger. Under the court order, the Company will waive any claims
against the Hollinger Directors for breach of fiduciary duties for failing to
attend such Board meetings, and will not commence any action against the
Hollinger Directors, Brent Baird, Albrecht Bellstedt, or Peter Dey, during the
period ending on September 21, 2007.
There can be no assurance that any settlement will be reached in this
matter. If no settlement is reached, the parties will retain all of their
About Sun-Times Media Group
Sun-Times Media Group, 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 more than 200 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.
For further information:
For further information: Sun-Times Media Group, Inc. Tammy Chase
Director of Investor Relations (312) 321-3230 email@example.com