In the newspaper industry, it is typical after an ownership change for the C.E.O. Chatham Asset Management to Pay $19.3M to Settle SEC Charges. Many hedge funds look to acquire companies that, while they may be failing, still generate a lot of cash. Terms & Conditions. I was there. Resources. AMI represents a large portion of Chathams portfolio. In 2013 and 2014, an Ohio pension system partially controlled by Gov. The family-owned publisher of The Sacramento Bee and The Miami Herald announced the winner of its bankruptcy sale: Chatham Asset Management, the owner of The National Enquirer. The firm and its founder, Anthony Melchiorre, have a reputation for hard-edged business. Pressure has been building. Gary Pruitt came to the newsroom. The Securities and Exchange Commission said the trades were executed at prices that lifted the value of American Media Inc. bonds at a significantly higher rate than . The iPayment case thrust questions about Chathams bond-trading methods into the open. Donnelley & Sons, McClatchy, Postmedia and Accelerate360. Washington, D.C.--(Newsfile Corp. - April 3, 2023) - The Securities and Exchange Commission today charged New Jersey-based Chatham Asset Management LLC and its founder, Anthony Melchiorre, in . The hedge fund owns about two-thirds of the companys long-term debt. Journalists employed by McClatchy, as well as the mayors in Lexington, Ky.; Sacramento; and Miami three cities served by McClatchy papers pushed for local, civic-minded ownership of the chain. Altogether, the company has cut over 1,600 employees since 2016, or 38 percent of its staff, based on company filings. Before long, the Chatham camp would make good on its threat against that executive, unleashing a tale of sex and money worthy of the Enquirer. Washington D.C., April 3, 2023 The Securities and Exchange Commission today charged New Jersey-based Chatham Asset Management LLC and its founder, Anthony Melchiorre, in connection with improper trading of certain fixed income securities. Hedge funds and private equity companies have become a force in the news industry. It needs to be bolstered and rebuilt, not milked for whatever profit it can still produce., Chatham Hedge Fund Has the Winning Bid for McClatchy Newspapers, https://www.nytimes.com/2020/07/12/business/media/hedge-fund-mcclatchy-newspapers.html. They stay away from editorial matters but tend to focus on finding efficient ways to cut costs, according to two of the people. Finra, the brokerage industrys main watchdog, subsequently concluded its review, and its unclear what if anything resulted from it. After Grimstad filed his suit, the Chatham camp countered, claiming Grimstad had used company money to pay a Las Vegas escort $4,000 for sexual activities and later hired her and her mother. Thats just not how bond math works, said Michael Terwilliger, a portfolio manager at Resource Credit Income Fund. Chicago, IL 60601, Court backs SEC in lawsuit challenging proxy-rule rescission, Labor Department addresses FAQs for multiemployer pension plans receiving SFA, U.S. regulators propose strengthening oversight of non-banks, Sponsored Content: EDHEC Climate and Finance Special, The Institutional Investors Guide to ESG Investing, The Plan Sponsor's Guide to Retirement Income, 2023 Defined Contribution East Conference, SEC's rules moving too fast, industry says, SEC proposes requiring electronic submissions for nearly all forms, SEC seeks $2.4 billion in funding to boost staff numbers. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. The merger took place in November 2017, about a year after Chatham took majority ownership. A spokeswoman for Cohen declined to comment, and a spokesman for American Media and Pecker didnt respond to requests for comment. McClatchys troubles can be traced to 2006, when it bought its much larger rival, Knight Ridder, then the second-largest newspaper chain in the United States, for $4.5 billion, plus the assumption of $2 billion in debt. Thats because they are losing to him.. The state has said its exploring its options in light of Bezoss claim that American Media tried to blackmail him. The headquarters of Chatham Asset Management in Chatham, N.J. To contact the reporters on this story: Katherine Burton in New York at kburton@bloomberg.net;Sridhar Natarajan in New York at snatarajan15@bloomberg.net;Shahien Nasiripour in New York at snasiripour1@bloomberg.net, To contact the editors responsible for this story: Caroline Salas Gage at csalas1@bloomberg.net, ;David Gillen at dgillen3@bloomberg.net, David Scheer, Canada joins U.S., U.K. in diplomatic boycott of Beijing games, Canada's ambassador to China steps down after Huawei crisis, Trudeau weighs auto-content rules as next U.S. trade flashpoint. The matter has been resolved and we are focused on generating returns for our investors.". The next year, Seaport received internal complaints that brokers there agreed to buy bonds from Chatham with the promise the hedge fund would repurchase them at higher prices, according to people with knowledge of the situation. In 2018, American Media announced the sale of the tabloid to the family that founded the Hudson News chain of newspaper and magazine shops. He built his stature as a temperamental money-maker at the white-shoe firm. 2023 BridgeTower Media. Chatham engaged in these trades to address portfolio constraints such as industry or issuer fund concentration limits, meet investor redemptions, and allocate capital inflows and outflows. The deal was partly financed by one private equity fund, Apollo Global Management, and Gannett is now controlled by another private equity fund, Fortress Investment Group, which is owned by the Japanese conglomerate SoftBank. When Walt Disney Co. bought The Star and its parent company, Capital Cities/ABC, in 1995, Disney C.E.O. At least one executivethe one Cohen and Pecker sparred withhas accused the New Jersey firm of market manipulation. Chatham Asset Management, LLC Anthony Melchiorre Managing Member Dear Mr. Melchiorre, We are writing to follow up on our discussions with regards to your non-binding, conditional indication of interest to acquire R. R. Donnelley & Sons Company. Before long, the Chatham camp would make good on its threat against that executive, unleashing a tale of sex and money worthy of the Enquirer. CHATHAM ASSET HIGH YIELD OFFSHORE FUND, LTD. CHATHAM ASSET PARTNERS HIGH YIELD FUND, L.P. In April, the company said it had received a Chatham-led bid worth more than $300 million. Use of this website is subject to its Terms of Use | Privacy Policy | Your California Privacy Rights/Privacy Policy | Do Not Sell My Info/Cookie Policy. We'll assume you're ok with this, but you can opt-out if you wish. CHATHAM, N.J., Sept. 1, 2021 /PRNewswire/ -- Chatham Asset Management, LLC (" Chatham "), a private investment firm which manages funds that beneficially own approximately 14.9% of the. Search Crunchbase. No, I dont think hell be visiting the newsroom and talking about Chathams plans for the paper. Anyone can read what you share. His behavior infuriated some senior executives, according to former colleagues. Download 13F Summary John Longo, a professor at Rutgers Business School, said such ownership did not necessarily mean a disregard for journalism. Chathams track record as an owner of a major newspaper chain is grim, according to 10 current and former Postmedia employees who spoke with The New York Times on the condition of anonymity because they feared retaliation. But just on the outside chance he does come around, would somebody please take his picture and send it to me? How do I update this listing? 5.Anthony Melchiorre, age 55, resides in Short Hills, New Jersey. (Another Postmedia creditor, the hedge fund Canso Investment Counsel, is being paid back more quickly based on an earlier agreement.). In recent months it put together the bid that has been declared the winner in a U.S. Bankruptcy Court auction supervised by Judge Michael E. Wiles, a McClatchy spokeswoman said on Sunday. Location Chatham, New Jersey, United States; Regions Greater New York Area, East Coast, Northeastern US; Alt Turnover is calculated by taking either the total MV of new purchases or divided by the total MV of the fund. There are people who dont like him. What a perfect synecdoche. Two other old-line media investments, Postmedia Network Canada Corp. and McClatchy Co., have become central to Chatham and its thesis that itll make money in an industry others are fleeing. . Chatham Asset Management LLC and its founder Anthony Melchiorre have agreed to pay more than $19.3 million to settle charges in connection with improper . American Media now owes debtholders in excess of $1 billion, more than the book value of its assets. Fortress is owned by the Japanese conglomerate SoftBank. Grimstad claimed in filings that Chatham had manipulated iPayment bonds to seize control of the company. The deal happened so quietly that Postmedias own financial news site described it as a debt restructuring in a report that included a single mention of Chatham as one of the investors.. The SECs investigation was conducted by Daphne Downes, Brian Fitzpatrick, and Lindsay S. Moilanen, with assistance from Carina Chambarry and Raymond Wolff of the SECs Division of Economic and Risk Analysis. After several stints at elite firms like Goldman Sachs and Morgan. In a statement, Craig Forman, the McClatchy chief executive, said Chatham would allow the company to continue providing strong news coverage. email address below and choose 'Submit'. or to simply have an email sent to you whenever we receive a new To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. This category only includes cookies that ensures basic functionalities and security features of the website. Best known for its luridEnquirerheadlines (Aliens Are Living in My Toilet), AMI has been beset by a difficult environment for print publications. And given the strains in the print-media business, the strong price of the debt is difficult to explain, traders say. to see more advanced email alert options such as selecting any type of During the Relevant Period, Melchiorre owned approximately 70 percent of Chatham, and is the managing member of the general partner entity for each of the Funds. Price swings on the trades described in the lawsuit marked the biggest-ever percentage changes in those securities, data reviewed by Bloomberg show. Since 2017, Postmedia has paid out over $6.2 million Canadian, or about $4.5 million, in bonuses to its five top executives, including Mr. MacLeod, the chief executive, and Paul Godfrey, the executive chairman of the board. The companys C.E.O., Anthony Melchiorre, doesnt give interviews, and no photo of him is available online. Investment Advisor --With assistance from Neil Weinberg and Matt Robinson. Whalewisdom has at least 9 13F filings, 19 13D filings, 29 13G filings, and 127 Form 4 filings. A year later, 3 grads CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. Following the successful launch of its Newport Centre location last fall, the brand recently unveiled its newest restaurant d[], JLL secured a long-term lease for 3,400 square feet for Rubinstein Plastic Surgery Center LLC, a cosmetic surgery practice, m[], The CEO of Toorak Capital Partners offers an analysis of the current residential real estate market, the [], Video Replay: NJBIZ Leaders In Digital Technology 2023, Congratulations to the 2023 NJBIZ Leaders in Law honorees (updated), Introducing NJBIZ Connect Your Guide to New Jersey Businesses, NJBIZ unveils 2023 Leaders in Finance Lifetime Achievement Honoree, Introducing the 2023 NJBIZ Leaders in Finance honorees (updated). Apr 3, 2023. Performance numbers calculated through 2022-05-16. Yet its junior bonds offer yields comparable to more senior securities. The information you requested is not available at this time, please check back again soon. Within weeks, the notes were back at about par. Enjoy your pension, which is fleeting. Then theres American Media. The California state pension system has been planning to exit all of its hedge fund investments and has been asking Chatham to sell holdings so it can return about $200 million. A spokeswoman for Cohen declined to comment, and a spokesman for American Media and Pecker didnt respond to requests for comment.