UPDATE 2-Hollinger, Sun-Times settle disputes

(Adds dispute resolution, adds NEW YORK dateline)

By Robert MacMillan and Karey Wutkowski

NEW YORK/WASHINGTON, March 25 (Reuters) - One of the former cornerstones in ex-press lord Conrad Black's media empire, the Sun-Times Media Group Inc (SVN.N), said on Tuesday it has agreed to settle various disputes and litigation with its controlling shareholder, Hollinger Inc HLGc.TO.

Hollinger also agreed to pay $21.3 million to settle charges it engaged in a scheme to divert money from the Sun-Times, the U.S. Securities and Exchange Commission.

The developments come after Black began serving a 6-1/2-year sentence earlier this month on charges of obstructing justice and defrauding shareholders of Hollinger International, once the world's third-largest publisher of English-language newspapers.

The SEC said Hollinger Inc and former executives, including Black, diverted about $85 million from Hollinger International, now known as Sun-Times, to Hollinger Inc and corporate insiders through purported "non-competition" payments.

Hollinger Inc settled without admitting or denying the charges, the SEC said.

The Sun-Times, which publishes its namesake Chicago daily newspaper, said the settlement with Hollinger will end the shareholder's voting control by converting a special class of stock into regular shares.

As part of the settlement, Hollinger Inc's directors on the Sun-Times's board will resign, the companies said. The Sun- Times is continuing to seek a buyer for the company.