The Ontario Securities Commission says it will not amend cease-trade orders that prevent Conrad Black from privatizing his holding company, Hollinger Inc.

In a decision issued today, the denied applications to vary management cease trade orders against certain directors, officers and insiders of Hollinger Inc. and Hollinger International.

The orders had originally been issued by the OSC on June 1, 2004 because Hollinger Inc. and Hollinger International had failed to comply with their obligations to file interim and annual financial statements, related MD&A, and annual information forms.
The OSC decision casts doubt on a vote scheduled for Thursday, where Hollinger shareholders were to decide if the privatization should go ahead. The cease-trade orders had to be amended to allow the proposal to be completed.

Hollinger. has cancelled the meeting scheduled for Thursday .

In a statement, the panel of OSC Commissioners said, ” “The minority shareholders are entitled to be certain that the safeguards which are so central to Rule 61-501 are permitted to work effectively. When a related party attempts to exert undue influence, … and regardless of whether such apparent attempts are successful, shareholders’ confidence in the integrity of the safeguards may, justifiably, be undermined.”