EX-99.1 2 t16191exv99w1.txt EX-99.1 HOLLINGER INC. COMMENCES ACTION AGAINST RAVELSTON AND BLACK ENTITIES AND CERTAIN FORMER DIRECTORS TORONTO, ONTARIO, CANADA, MARCH 29, 2005 - HOLLINGER INC. (TSX: HLG.C; HLG.PR.B) announced today that it has issued a Statement of Claim in the Ontario Superior Court of Justice to commence a legal action against The Ravelston Corporation Limited, Ravelston Management Inc., Moffatt Management Inc. and Black-Amiel Management Inc. as well as former directors and officers Conrad M. Black, F. David Radler, Jack A. Boultbee and Peter Y. Atkinson. The Claims: Claims made are for monetary damages from all defendants jointly and severally in the amount of $550 million as well as reimbursement of certain amounts owing to Hollinger by the Ravelston defendants in the amount of approximately $86 million plus accrued interest and costs. The monetary damages include management fees and non-competition payments misappropriated to Ravelston and the individual defendants during a period since 1998, as well as reimbursement of fees and costs including those related to the current inspection by Ernst & Young Inc. and the now withdrawn going private transaction. Other bases of the claims include diversion of corporate opportunities, breach of fiduciary duties and oppression. Background: Hollinger's principal asset is its interest in Hollinger International Inc. which is a newspaper publisher, the assets of which include the Chicago Sun-Times, a large number of community newspapers in the Chicago area and a portfolio of news media investments. Hollinger also owns a portfolio of revenue-producing and other commercial real estate in Canada, including its head office building located at 10 Toronto Street, Toronto, Ontario. Media contact: Larry Parnell Hill & Knowlton 416-413-4623 larry.parnell@hillandknowlton.ca www.hollingerinc.com