Hollinger receives consents for 11 7/8% notes, sells extra $15 million

New York, Sept. 30 - Hollinger Inc. said it received the necessary consents to amend the indenture for its 11 7/8% senior secured notes due 2011 and also issued an additional $15 million of the notes in a private placement.

The consents to amend the indenture were received from holders of a majority of the securities.

As part of the changes, Hollinger will not be required to file financial reports with the Securities and Exchange Commission, the noteholders and the note trustee until Jan. 1, 2006.

The amendment also allows Hollinger to incur up to $15 million of debt by issuing additional notes and to use up to $10.5 million of the cash collateral for the notes to make future interest payments.

Holders also waived all events of default arising from Hollinger's failure to file its 20-F annual report with the SEC.

All holders, whether they gave consents or not, will receive a fee of $35 per $1,000 principal amount.

Hollinger has $78 million of the notes outstanding.

Hollinger sold the $15 million of additional 11 7/8% notes due March 1, 2011 at par. Proceeds will be used for general corporate purposes.

Hollinger is a Toronto-based owner of a 68.0% voting and 18.2% equity interest in Hollinger International, an international newspaper publisher.

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