Cay: Black's times are tight

The British Barclay brothers abandoned on Tuesday their offer to buy Conrad Black's Canadian holding company, Hollinger Inc, which owns a 40 percent interest in Cayman Free Press. 

This leaves Hollinger Inc. in a severe cash crisis and the company failed to make an interest payment due on Monday on a $120 million bond issue, but maintained that it was not yet in default.

The Barclays' deal with Black was to include buying Hollinger Inc.'s bond debts. They would have put up the cash for the interest payment, but the burden has now fallen on Black and companies he controls.

Hollinger Inc. has a 30-day grace period before the debt is technically in default. 

If that happens, the bondholders could take control.