Hollinger International's board was preparing to meet yesterday to demand answers from chairman Lord Conrad Black about whether he intended to meet a deadline tomorrow to make an $850,000 (€685,000) payment to the newspaper publisher.

People familiar with the matter said a special committee of Hollinger's board was considering dramatic options if Lord Black refused to make the payment, including stripping the Canadian-born newspaper proprietor of his chairmanship. Lord Black technically had until Tuesday to make the payment, one person said, because Monday is a public holiday in the US.

Lord Black vowed in November to pay back more than $7 million he received in fees in previous years after an internal inquiry discovered the payments were not approved by the board. But recently he seemed to change his mind after his attorney alleged he had found "new" evidence regarding the payments. A spokesperson for Lord Black refused to comment on the evidence.

"If Conrad backs up, [the special committee] won't do nothing," said Mr Bert Denton, an adviser to Hollinger shareholders. However, Lord Black is Hollinger's controlling shareholder and some insiders speculate that he could dismiss the board and the special committee. Hollinger is also seeking to stop Lord Black selling his stake in Hollinger Incorporated, a Canadian holding company that controls about 73 per cent of Hollinger International. - (Financial Times Service)