Hollinger Inc. has agreed to hand over its share in the Sun-Times Media Group (STMG) to one of its creditors, Davidson Kempner Management LLC, as part of a revised agreement that ends the bankrupt Toronto holding company's control of the Chicago Sun-Times publisher, Editor & Publisher reported Thursday.

The super-voting class of stock, which permitted Hollinger Inc. to have power over a 70 percent voting stake in STMG with a mere 19.7 percent equity wager, will be put to an end through the agreement.

Davidson Kempner (DK), holding about 42 percent of Hollinger Inc.'s debt, agreed not to force Hollinger into insolvency. In addition, DK will be paid an up front fee of US$1.5 million as well as up to $3 million for legal fees, according to E&P.

The agreement replaces a settlement announced in April, which would also have converted super-voting stock into stock with just one vote per share.

Conrad Black, the former chairman of STMG when it was called Hollinger International, was found guilty of U.S. federal fraud charges in association with improper fees from sales of Hollinger International's community papers. He is currently serving a six-year prison sentence in Florida.

The settlement also states that STMG and Hollinger Inc. will equally divide any money they win within their litigation against Ravelston Corp. Ltd., an additional company owned by Black, as well as his former lieutenant F. David Radler, who pleaded guilty to fraud charges similar to Black's and testified against Black in exchange for a lighter sentence.