Postmedia and Torstar concluded the deal with no cash changing hands. It will not be split up, McClatchy said, its 30 news outlets remaining intact. The information you requested is not available at this time, please check back again soon. You know a little about ledes (leads) yourself. PDF UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION Im always for local ownership whenever possible, and local support, said Sree Sreenivasan, professor of digital innovation at Stony Brook Universitys School of Journalism, sounding a note of caution regarding finance-industry ownership. 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. containing a link to download the .zip file of the CSV file(s) you requested. Currently investing in Vericasts term loan facility due 2026. email address below and choose 'Submit'. The private equity fund Fortress Investment Group controls the largest American newspaper chain, Gannett, which publishes USA Today, The Arizona Republic and 250 other dailies. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. The consultant reviewed Chatham's trading annually for compliance with applicable laws and did not alert the firm to any issues. New York, NY 10017-4036, Chicago Office At least five other traders whove looked at the bonds say their prices seem too good to be true. The ugly litigation with the tech executive was resolved with a less-than-remorseful apology and a multimillion-dollar payday for Grimstad. Chatham and the Enquirers publisher, David Pecker, had turned to Trumps fixer as a mediator. In an April 3 announcement, the Securities and Exchange Commission said that Chatham Asset Management LLC and founder Anthony Melchiorre agreed to pay more than $19.3 million in combined . Chathams tabloid publisher possesses a treasure trove of Trumps secrets, his former fixer Cohen told Congress last month. That money was part of a deal the company had struck with Karen McDougal, a Playboy model who said she had an affair with Donald J. Trump. Cohens assignment: Get Carl Grimstad, the recently fired CEO of payments processor iPayment Holdings, to the table. The company regrets any distress that may have been caused to the Grimstads by the public filing of the litigation against them, Chatham-controlled iPayment said at the time. Despite the macroeconomic warnings of a recession and job[], A Cherry Hill-based financial institution is back on top of Small Business Administration lenders in New Jerse[]. Chatham Asset Management is a hedge fund with 13 clients and discretionary assets under management (AUM) of $8,608,297,054 (Form ADV from 2022-03-30). The companys main office is on the second floor of a nondescript, two-story office building in Chatham, NJ, 28 miles west of the Manhattan skyscrapers. Alpes-Maritimes, France Genealogy FamilySearch Download 13F Summary 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. In addition to being a principal owner of American Media Inc., the parent company of The Enquirer and other tabloids, it is a major investor in Postmedia, the publisher of Canadian newspapers including The National Post, The Montreal Gazette and The Ottawa Citizen. And as it happened, the hedge fund owned the tabloid, the National Enquirer, that he had just used to try and catch and kill stories about the future president. The hedge fund has become a major player in the news industry. Google and Facebook came to dominate the online ad market, hampering publishers attempts to generate the necessary revenue from digital advertising. Hes a street fighter, said Mike Rankowitz, his boss at Morgan Stanley. For the low-profile Chatham, American Media has become a high-profile headache. Bob Hepburn, a Torstar spokesman, said, Torstar continues to cooperate with the bureau in its investigation.. The McClatchy chairman, Kevin S. McClatchy, the great-great-grandson of its founder, has said the companys inability to meet its pension obligations tipped it into bankruptcy. CHATHAM ASSET HIGH YIELD OFFSHORE FUND, LTD. CHATHAM ASSET PARTNERS HIGH YIELD FUND, L.P. In 2018, American Media announced the sale of the tabloid to the family that founded the Hudson News chain of newspaper and magazine shops. Performance Anthony is Managing Member/Portfolio Manager and has served as Managing Member/Portfolio Manager since 09/01/2003. The threat was blunt: Back off, or there will be trouble. The ugly litigation with the tech executive was resolved with a less-than-remorseful apology and a multimillion-dollar payday for Grimstad. 11 Beds 11 Baths 5382 sqft. As you are aware, Chatham Asset Management, LLC (together with its affiliates, "we" or "Chatham") is a New Jersey-based credit investment firm with extensive investments in the print media. They are scrappy, and they arent afraid of litigation to defend their investments, said Leon Cooperman, a recently retired hedge fund mogul who is a Chatham investor and part owner of American Media, the Enquirers publisher. Chatham CEO Anthony Melchiorre and McClatchy CEO Craig Forman assuming Forman stays in place both believe in the . Investment Advisor Thats because they are losing to him.. The 2016 presidential campaign had just ended, and Michael Cohen was fresh off handling hush money for Donald Trump. Pressure has been building. AMIhas deniedit helped Trumps campaign, although Pecker was recently granted immunity as part of the Cohen probe. An SEC spokesman declined to comment. If asked to vote, I can assure you I will be voting for us to divest, he said. Ive received well over six figures since retiring in 2006, and I could get another six, if I live long enough and if the PBGC either makes McClatchy pay up or picks up at least two-thirds of the companys pension responsibilities. In recent months, Postmedia closed approximately 15 community publications and laid off 120 employees in response to the Covid-19 pandemic, The Toronto Star reported. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Improper Fixed Income Securities Trading. What a perfect synecdoche. This website uses cookies to improve your experience. How do I update this listing? Hes a street fighter, said Mike Rankowitz, his boss at Morgan Stanley. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Revenue has dropped an average of 10 percent a year since 2016. He built his stature as a temperamental money-maker at the white-shoe firm. AMI gave$10,000 to a super PACsupporting Christies 2016 presidential bid, and Mother Jones reported that ChristieplacedPecker on his campaign leadership team. Chatham has tried to unload The Enquirer. --With assistance from Neil Weinberg and Matt Robinson. Anthony Melchiorre, Chatham Asset Management, LLC: Profile and Biography - Bloomberg Markets Bloomberg Terminal Demo Request Bloomberg Connecting decision makers to a dynamic network of. the MV of securities sold, whichever is less, After he departed amid a round of layoffs, Melchiorre quit Manhattan to join the Jersey Boys, a clique of hedge funders across the Hudson River that included billionaires Cooperman and David Tepper. The guy who will be drawing the blood, Anthony Melchiorre, apparently is a piece of work. State officials are well-positioned and duty-bound to investigate allegations of potential wrongdoing in hedge fund portfolios, said former Securities and Exchange Commission attorney Edward Siedle. Chatham investment firm moves to acquire Vericast for $2.85B During the last five years, taxpayers in New Jersey, Ohio and California have owned large financial stakes in the owner of the media company that allegedly helped the Trump campaign bury negative stories, according to documents reviewed by Capital & Main and MapLight. Snap CEO Evan Spiegel wiped out over $10 million in student loans for an entire graduating class. Alden controls roughly 200 outlets through its newspaper chain, MediaNews Group. Position: Managing Member/Portfolio Manager, Company/Fund Name: Chatham Asset Management, LLC, Address: 26 Main Street, Suite 204, Chatham, NJ, 7928, United States. Fortune said Melchiorre wasnt a particularly good fit at the firm and irritated some senior executives. Their bonds, though, havent suffered. 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. Recent cases brought by the regulator show its trying to ensure that investors have a full and fair understanding of how instruments in the market are being priced.. It is mandatory to procure user consent prior to running these cookies on your website. 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 . Chatham already owns about half of the outstanding indebtedness of the marketing company, explaining that the purchase price is the value of outstanding indebtedness. Its boundaries differed from those of the modern department, however. Aiysha Johnson will take the helm of the 13,000-plus member organization following Ralph Albert Thomas' June retirement. That kind of showing helped the firm attract $300 million from investors this quarter, a person familiar with the matter said. That made it one of the best performing bonds in the world at the time. Andrew MacLeod, the chief executive of Postmedia, said that Chatham was not a day-to-day operator of the business, and that the cost cuts were all natural outcomes of a legacy business thats been in structural decline. He added that when Chatham came on board in 2016, it was one of the few financial players willing to take a risk on a newspaper business. You are limited to the prior 8 quarters of 13F filings. There are people who dont like him. By clicking Accept, you consent to the use of ALL the cookies. This post has been updated with additional information from Calpers and the Ohio pension system. Moreover, the SEC found that Chatham and Mr. Melchiorre calculated the net asset values of their client funds' holdings using pricing data that was based, in part, on the trading prices of the securities. The company that is poised to take control of McClatchy and its 29 daily papers doesnt have a website. House in Cabris, Provence-Alpes-Cte d'Azur, France. Over that time, Chatham has sunk even more money into one of its most controversial investments: National Enquirer parent American Media, which accounts for about 16 percent, or $400 million, of the $2.5 billion that Chatham manages in its main fund and related accounts. Chatham hasnt been accused of wrongdoing by authorities, and the fund had no comment on its interactions with federal inspectors. Ex-99.1 - Sec Fast Company & Inc 2023 Mansueto Ventures, LLC, State pension funds invested millions in hedge fund that controls National Enquirer parent. Trumps former attorney, Michael Cohen, recentlypleaded guiltyto breaking campaign finance laws stemming from payments he made to women to hide affairs with the former reality TV star and real estate magnate. The New York Post put the story on its front page under the headline Frisky Business. (Grimstad has called those allegations false and meritless.). Then theres American Media. Hedge Fund Chatham, Founder Melchiorre Pay $19M in SEC Case Over Bond Which is concerning., Under Hedge Fund Set to Own McClatchy, Canadian Newspapers Endured Big Cuts, https://www.nytimes.com/2020/07/16/business/media/hedge-fund-chatham-mcclatchy-postmedia-newspapers.html. Marian Needham, the executive vice president of the NewsGuild, the union that represents employees at some McClatchy newspapers, said in a statement that McClatchy needed to adopt existing collective bargaining agreements. The SEC would like to thank the Financial Industry Regulatory Authority for its assistance with this matter. Choose your news we will deliver. Alpes Maritimes is part of the Provence-Alpes-Cte d'Azur region. You are now being redirected to the BCE.ca website (Bell Canada Enterprises), where you can view our Accessibility plan,and submit your feedback using our Accessibility webform. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. Chatham Asset Management to Pay $19.3M to Settle SEC Charges In the interest letter to Vericast CEO John OMalley, Chantham Managing Member Anthony Melchiorre detailed CAMs longstanding investments in the company, including: We are prepared to support any financing requirements for this transaction by subordinating some of our debt interests into subordinated notes or equity, thereby reducing the companys net leverage by up to 2.0x, Melchiorre wrote. Subscribe for access to the latest digital and special editions. At least one executivethe one Cohen and Pecker sparred withhas accused the New Jersey firm of market manipulation. All Rights Reserved. Chatham hasnt been accused of wrongdoing by authorities, and the fund had no comment on its interactions with federal inspectors. Californias pension fund also has a $235 million stake in a Chatham fund. CHATHAM, NJ A Chicago-area kid who studied economics at Northwestern and got an MBA from the University of Chicago, his high-toned education didnt reduce the intensity of the former high-school football star. 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. FORTUNE may receive compensation for some links to products and services on this website. Chatham has been restructuring their debt to give them more time. I cannot talk on behalf of the entire SIC, but I will be doing everything in my power to convince a majority to vote the same way.. Chris Christies administrationmoved$300 millionof pension cash into the Chatham Fund, LP, which hasowneda stake in AMI, according to SEC records. Chatham Hedge Fund Has the Winning Bid for McClatchy Newspapers Local journalism has never been more vital, Mr. Forman said, and we remain steadfast in our commitment to delivering on our mission and continuing to serve our communities.. NJBIZ, New Jerseys leading business journal, provides 24/7 business news coverage and events honoring top business professionals. Best known for its luridEnquirerheadlines (Aliens Are Living in My Toilet), AMI has been beset by a difficult environment for print publications. CHATHAM ASSET HIGH YIELD MASTER FUND, LTD. CHATHAM ASSET PRIVATE DEBT AND STRATEGIC CAPITAL OFFSHORE FUND II, LP, CHATHAM ASSET PRIVATE DEBT AND STRATEGIC CAPITAL FUND II, LP. They give us a lowdown on how much money were losing and the need for cost cutting, but then they go and give these big bonuses. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for 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 connection with improper trading of certain fixed income securities. Hedge funds and private equity companies have become a force in the news industry. We'll assume you're ok with this, but you can opt-out if you wish. Resources. That may worry McClatchy journalists, who are wondering how Chatham would run the business at a time when Google and Facebook dominate the online ad market and fewer readers are willing to pay for news, challenges that have been worsened by the coronavirus pandemic. But many dailies remained sources of reliable cash flow, making them attractive investments for owners focused on maximizing returns. In all three cases, Chatham bought most of the subordinated bonds, plus stock. 2023 BridgeTower Media. The announcement, which signals an end to 163 years of family ownership, underlines the growing influence of the finance industry on American newspapers. In a statement, a Chatham spokesman said the company was pleased with the outcome of the auction, adding, Chatham is committed to preserving newsroom jobs and independent journalism that serve and inform local communities during this important time.. And your word synedoche drove me to the online dictionary. Chatham Asset Management Submits Indicative Bid to Acquire Vericast On Friday he ordered remaining ones back to the office. This category only includes cookies that ensures basic functionalities and security features of the website. 2023 Fortune Media IP Limited. They wanted to kill a lawsuit by the former head of another Chatham company. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Since Chatham Asset Management took over Postmedia, Canadas largest newspaper chain, 1,600 employees have been laid off and more than 30 papers shut down. Offers may be subject to change without notice. A New Jersey Treasury Department spokesperson said in an email that its Division of Investment is in regular contact with its investment partners regarding underlying portfolio companies and provides feedback when appropriate. Austin Weinstein Hedge fund Chatham Asset Management and its founder, Anthony Melchiorre, agreed to pay more than $19 million to settle US allegations that the firm improperly traded. 5.Anthony Melchiorre, age 55, resides in Short Hills, New Jersey. Wall Streets main regulator has been looking into opaque markets since the financial crisis, uncovering a wide swath of bad behavior from lying salespeople to bogus quotes from brokers. How fitting. A year later, 3 grads CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. In the newspaper industry, it is typical after an ownership change for the C.E.O. Anthony Melchiorre has served as Managing Member/Portfolio Manager of Chatham Asset Management, LLC since 2003. Chatham, which manages about $4 billion in assets on behalf of its clients, is expected to become the majority owner in the third quarter of the year, McClatchy said, and the publicly traded. Anthony Melchiorre has an ownership stake in Chatham Asset Management, LLC of between 50% and 75%. There are people who dont like him. Create Email Alert, ***Log In or Anthony Ralph Melchiorre - Chatham Asset Management, LLC Thanks, Tracy. Traders have privately criticized what they see as lofty valuations of illiquid securities. Over that time, Chatham has sunk even more money into one of its most controversial investments: National Enquirer parent American Media, which accounts for about 16%, or $400 million, of the $2.5 billion that Chatham manages in its main fund and related accounts. 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. This will schedule a job to export all requested 13f holdings data for this filer. After sparking federal prosecutors ire for its role in burying Trumps secrets shortly before the 2016 election, the company has drawn international attention for its war with Jeff Bezos over its expos of his extramarital affair. Chatham is led by Anthony Melchiorre, a Chicago-area native who has earned a reputation on Wall Street as a tough negotiator. Turnover is calculated by taking the # of new holdings (initial purchases) + the # of positions sold out of (not just reduced) divided by the total # of holdings for the quarter. We are deeply concerned that this venerable newspaper chain which has won 54 Pulitzer Prizes will now transfer to the ownership of a hedge fund more known for its drive to maximize profits than for its commitment to producing quality journalism, said Ms. Needham, who is a member of the committee of unsecured creditors in McClatchys bankruptcy case. Its bonds staged an improbable rally last year, charting a steady climb over 50% from 80 to 125 cents on the dollar. I wouldnt even begin to consider owning it at that level. Chatham investment firm moves to acquire Vericast for $2.85B. Melchiorre and his wife have donated more than $100,000 to Republican candidates and party committees since 2010. 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 Christie administrations shift of $500 million into Chatham makes New Jersey retirees a substantial investor in the hedge fund, which manages $3.2 billion in assets, according tostate records. 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). Main Office Hedge funds and private equity firms entered newsrooms during the Great Recession, when readers were migrating toward digital sources of news and local newspapers were losing value. Serving as the lead backstop investor in Vericasts multibillion dollar refinancing transactions in 2020 and 2021. At least five other traders whove looked at the bonds say their prices seem too good to be true. The fund, Chatham Asset Management, acquired two-thirds of Postmedia, the publisher of The National Post, The Vancouver Sun and several other major Canadian papers, by trading a portion of the money it was owed for the majority ownership stake. Its bonds staged an improbable rally last year, charting a steady climb over 50 percent from 80 to 125 cents on the dollar. Along with the public pension funds, four other private pension fundsincluding those for Ford and Toyota Motors employeeshave had investments with Chatham, according to financial research firm Preqin. Yet its recent focus on tough-to-trade investments has given some clients pause, and initially drove off investors such as the Ohio state pension fund. Chatham Asset Management Increases Offer to Acquire R.R. Donnelley to Anyone can read what you share. With roots going back to 1857, McClatchy, a consistent winner of top journalism awards, was one of the last major family-run news publishers. Then theres American Media. The new, supersize version of Gannett resulted from a merger last year between Gannett and the parent of GateHouse Media. After working at investment banking firms Donaldson, Lufkin & Jenrette and Goldman Sachs, he went to Morgan Stanley in 1998, where he worked his way up to heading the firms junk-bond trading group. Enter your email address to subscribe to this blog and receive notifications of new posts by email. That deal still has not closed. In that same period, the editorial ranks at The National Post, its flagship paper, have been reduced by about a third, according to three of the people. ", A representative for Chatham said in an email that "Chatham sought, received and followed advice from an independent compliance consultant about the manner of executing the trading in question. 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. Its bonds rarely change hands. They also agreed to pay civil penalties of $4,400,000 and $600,000, respectively. Such wagers have come under increased scrutiny from regulators in the last year. Since Chatham took a majority stake in Postmedia, the company has cut its work force, shuttered papers across Canada, reduced salaries and benefits, and centralized editorial operations in a way that has made parts of its 106 newspapers into clones of one another.