As part of it, Postmedia traded 17 of its papers to Torstar in exchange for 24 Torstar papers. It was a lucrative move. That's why all these financial players Chatham Asset Management here, Alden Global Capital, Fortress Investment Group, and Apollo Global Management elsewhere find newspapers such a hospitable environment. Fortune said Melchiorre wasnt a particularly good fit at the firm and irritated some senior executives. Federal regulators have been asking questions, too. 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. Good writing. 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. While he was wrangling with Chatham, news trucks were parked outside his house for days. Its pretty frustrating, said Brian Gibson, the president of the local union that represents 140 members of the editorial staff at Postmedias Vancouver papers. The firm and its founder, Anthony Melchiorre, have a reputation for hard-edged business. 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. The Securities and Exchange Commission has stepped up examinations of various bond funds lately, inquiring about their relationships with brokers and how they value debt. 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. When Knight Ridder bought The Star and three other Disney-owned papers in 1997, Im pretty sure Knight Ridder C.E.O. Chatham Asset Management . What's the difference between a CRA tax review and audit? Chatham and the Enquirers publisher, David Pecker, had turned to Trumps fixer as a mediator. Chatham and Mr. Melchiorre consented to the SEC's order without admitting or denying its findings. Chatham Asset Management is based out of Chatham. 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 newspaper company will go private. Postmedia is under investigation by Canadian regulators over a deal with a rival publisher, Torstar, the owner of The Toronto Star, that resulted in the closing of 36 newspapers and the loss of nearly 300 jobs. The New York Post put the story on its front page under the headline Frisky Business. (Grimstad has called those allegations false and meritless.). Chatham Asset Management Offers To Acquire R.R. Donnelley For $7.50 Per 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. Long-term clients include the state pension fund of Chathams home state, New Jersey. While DOI plays no role in the management of a funds portfolio companies, it expects the funds to invest in good businesses with strong management teams that follow all applicable laws.. Behind the salacious headlines was an issue thats drawing scrutiny from regulators: bond prices. We have less boots on the ground, Mr. Gibson said. 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. Shortly after, Postmedia announced it would shut down all 24 newsrooms it had acquired, except for one, according to public filings. 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. ", 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. Snap CEO Evan Spiegel wiped out over $10 million in student loans for an entire graduating class. [1]: Homes for sale in Grasse, France have an average listing price of $1,650,490 and range in price between $498,470 and $19,828,038. 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. McClatchy, the publisher of The Miami Herald, The Kansas City Star, The Charlotte Observer and its flagship publication, The Sacramento Bee, filed for Chapter 11 bankruptcy protection in February. Here are some repayment options, Streaming giants required to contribute to Canadian content as Bill C-11 becomes law, How becoming common-law or getting hitched changes tax-filing season, {{data.symbol | reutersRICLabelFormat:group.RICS}}, {{ stock | formatPrefix }}{{ stock.netChng | formatNetChange }}, Katherine Burton, Sridhar Natarajan and Shahien Nasiripour. After several stints at elite firms like Goldman Sachs and Morgan. Ex-99.1 - Sec Luxury Homes for Sale in Cabris, Provence Alpes Cte D'azur, France House in Cabris, Provence-Alpes-Cte d'Azur, France. That kind of showing helped the firm attract $300 million from investors this quarter, a person familiar with the matter said. After several stints at elite firms like Goldman Sachs and Morgan Stanley, he was let go from Morgan Stanley in 2002 as part of a sweeping round of layoffs. A spokeswoman for Cohen declined to comment, and a spokesman for American Media and Pecker didnt respond to requests for comment. It doesnt employ a lot of people, and I doubt if it sponsors arts organizations and gives to charities in Chatham. The ugly litigation with the tech executive was resolved with a less-than-remorseful apology and a multimillion-dollar payday for Grimstad. An award-winning team of journalists, designers, and videographers who tell brand stories through Fast Company's distinctive lens, The future of innovation and technology in government for the greater good, Fast Company's annual ranking of businesses that are making an outsize impact, Leaders who are shaping the future of business in creative ways, New workplaces, new food sources, new medicine--even an entirely new economic system. Sad. Donnelley to $10.85 Per Share in Cash. It even offered lower yields than some blue-chip companies. I have no regrets whatsoever about going with the monthly pension. The $1.4 billion pension plan, created 75 years ago, was intended to provide money to more than 24,000 current and future retirees. 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. The SEC order found that these trades were executed at prices Chatham and Mr. Melchiorre proposed and had the effect of increasing the price of the AMI bonds at a significantly higher rate than the prices of similar securities. Chris Christies administrationmoved$300 millionof pension cash into the Chatham Fund, LP, which hasowneda stake in AMI, according to SEC records. They wanted to kill a lawsuit by the former head of another Chatham company. Another McClatchy creditor, the New York hedge fund Brigade Capital Management, was named in a public filing as a partner of Chatham in the April bid. This category only includes cookies that ensures basic functionalities and security features of the website. American Media now owes debtholders in excess of $1 billion, more than the book value of its assets. Hedge Fund 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 . Chathams trading has drawn scrutiny before. Start Free Trial . Chrome Extension. In all three cases, Chatham bought most of the subordinated bonds, plus stock. As a subscriber, you have 10 gift articles to give each month. Chatham Asset Management, founder Anthony Melchiorre hit with SEC If they dont do a good job serving their community, the profits wont follow.. Chatham investors say that even if authorities go after the National Enquirer for allegedly extorting Bezos or for catch-and-kill tactics, American Media is a valuable company, with several magazines it could sell to raise money for creditors. Hes a street fighter, said Mike Rankowitz, his boss at Morgan Stanley. The iPayment case thrust questions about Chathams bond-trading methods into the open. "As our order finds, Chathams trading in AMI bonds had the effect of increasing the prices of those generally illiquid securities in a way that was disconnected from economic reality," said Sanjay Wadhwa, Deputy Director of the SECs Division of Enforcement. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. I wouldnt even begin to consider owning it at that level. containing a link to download the .zip file of the CSV file(s) you requested. Chatham investment firm moves to acquire Vericast for $2.85B Within weeks, the notes were back at about par. As a subscriber, you have 10 gift articles to give each month. Subscribe for access to the latest digital and special editions. Vericast recently announced several growth initiatives, including investing in technology and hiring for more than 250 new positions across the organizationits largest investments in innovation and employees since the companys 2020 launch. Chatham Asset Management to Pay $19.3M to Settle SEC Charges. The hedge fund is run by Anthony Melchiorre, a GOP donor whoreportedlymetwith the president and AMI CEO David Pecker at the White House soon after Trump took office. In a statement, Craig Forman, the McClatchy chief executive, said Chatham would allow the company to continue providing strong news coverage. In the last two fiscal years that ended in August, Postmedia booked losses totaling about $40 million in Canadian dollars. The Ohio pension system did not respond to questions about whether it will seek to divest assets from Chatham. Currently investing in Vericasts term loan facility due 2026. CHATHAM ASSET MANAGEMENT, LLC Top 13F Holdings - WhaleWisdom.com Price swings on the trades described in the lawsuit marked the biggest-ever percentage changes in those securities, data reviewed by Bloomberg show. 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.. $19.3M Penalty For Chatham-Based Hedge Fund For Bond Trading - MSN Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices The companys C.E.O., Anthony Melchiorre, doesnt give interviews, and no photo of him is available online. A similar story has unfolded at newspaper publisher McClatchy, which has posted annual losses since 2015. But Mr. MacLeod, the chief executive, acknowledged complaints about the cuts. The hedge fund also has officials who serve as directors at AMI. The regulator declined to comment. Fast Company & Inc 2023 Mansueto Ventures, LLC, State pension funds invested millions in hedge fund that controls National Enquirer parent. Its bonds rarely change hands. The 2016 presidential campaign had just ended, and Michael Cohen was fresh off handling hush money for Donald Trump. There are 8 other people named Anthony Melchiorre on AllPeople. Chatham's and Mr. Melchiorre's trading in the AMI bonds accounted for the vast majority of trading in those securities and therefore over time had a material effect on their pricing, according to the SEC. Like most newspaper companies, including McClatchy, which struggled for more than a decade before filing for Chapter 11 bankruptcy protection in February, Postmedia has suffered falling revenues, making cost cuts all but inevitable. You are limited to the prior 8 quarters of 13F filings. 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 SEC noted.
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