For 40 years, Montreal businessman Peter White worked alongside Conrad Black, building the Hollinger newspaper chain into one of the largest media companies in the world.
Today, the Hollinger empire is long gone and Mr. White no longer has the air of a newspaper baron. He has lost most of his wealth, fending off various civil claims stemming from Hollinger's collapse, and he can't even afford a lawyer.
"It has been pretty bad," Mr. White said Monday after a court hearing in Toronto concerning the bankruptcy protection of Hollinger Inc., a key part of the newspaper empire that he once ran. "I've had to do a lot of reorganization and downsizing and selling this and selling that in a very bad market."
Mr. White cut a lonely figure in the courtroom Monday, which was packed with more than a dozen lawyers representing various creditors and other interests. Toronto-based Hollinger Inc. has been in bankruptcy protection for more than three years and it now has virtually no assets and no business prospects. The company's only real activity is filing lawsuits in the hope of reclaiming money for creditors, which might include Mr. White if he pursues a claim in court.
He and lawyers for Lord Black have bitterly criticized the people managing Hollinger's affairs, alleging they have spent millions on legal fees and received little if anything in return. In particular, Mr. White cites the salary of William Aziz, Hollinger's chief restructuring officer, noting that he is being paid $65,000 a month. "That's just milking the company," he said.
Mr. Aziz declined comment. All the fees have been approved by the court.
During Monday's hearing, Mr. White opposed at a move by Hollinger to seal most of the terms of the legal settlements with KPMG and Torys LLP. The settlements will end lawsuits Hollinger filed against the firms, largely over allegations they provided poor advice to the company. Under the settlements, KPMG and Torys do not admit to any wrongdoing but they have agreed to pay an undisclosed sum to end all legal action. The money will go into Hollinger's litigation fund to pay for more lawsuits, including a likely action against Mr. White and others.
The secrecy infuriates Mr. White, who argues he has a right to know how much money Hollinger is receiving, especially if it plans to sue him. "It's outrageous that they're demanding that these amounts be kept secret," Mr. White said after the hearing. "Why? For what good reason?"
Earl Cherniak, a lawyer representing Lord Black, also opposed the sealing order in court as did some other creditors.
In court filings, lawyers for Hollinger argued that disclosing the settlement terms could hinder their ability to pursue legal claims against others, including Lord Black and three banks that provided financing to Hollinger - Canadian Imperial Bank of Commerce, Toronto-Dominion Bank and Bank of Nova Scotia.
For Mr. White, standing alone in a courtroom marks quite a comedown in a remarkable career that once included advising Prime Minister Brian Mulroney and Quebec Premier Daniel Johnson Sr. In many ways he created the Hollinger empire by convincing Lord Black to get into the newspaper business in 1969. Together they bought the Sherbrooke Record for $18,000 and Mr. White then recruited his friend David Radler to help run the operation. Over the years, Hollinger's chain of papers expanded and stretched across Canada, the United States, Britain and Israel. It ended in 2003 when allegations of fraud surfaced inside the company's operating division based in Chicago. Lord Black, Mr. Radler and two others were convicted and went to jail.
Today, Mr. White, who was never implicated in the criminal case, spends his time doing some consulting work. He marvels at the legal fees incurred by former Hollinger Inc. director Ralph Barford, who has spent $250,000 on lawyers, saying he could never afford that.
He still keeps in touch with Lord Black, who is appealing his criminal convictions, but he can't afford to visit him at his home in Palm Beach, Fla. (Lord Black has been released on bail but cannot leave the United States). "I'm trying to save money as much as I can so I don't go flying off all over the place to see people," he said. "We're in frequent e-mail contact."
Paul Waldie