The Sun-Times Media Group Inc. said today its recovering funds from Canadian investment may delay because of difficulties in the commercial paper market.

The company, previously known as Hollinger International until last year, owns the Chicago Sun-Times and other local papers in the Chicago region. An internal company source said it has a $95 million investment in Canadian asset-backed commercial paper trusts.

The Sun-Times has $36 million invested with CIBC-sponsored trusts, which it expects to redeem on maturity. The primary concern is with $59 million invested with third-party sponsored trusts. Of this amount, $48 million invested in trusts sponsored by Ironstone Trust and Planet Trust did not redeem on maturity last week, according to BusinessWeek.

The rest of the $11 million with Lafayette Structured Trust matures Tuesday, but the Sun-Times said it has no direct confirmation if the investment will be redeemed at that time.

The company has $25 million deposited with CIBC from maturities redeemed last week and $65 million in short-term U.S. investment. Those funds are expected to be available at any time, the company said.

The Sun-Times said Monday there is no guarantee it will fully recover the principal from its Canadian investments, but it views the risk as one of timing instead of capital loss. It does not expect the possible delay in fund recovery to impact its operations.