2023 Fortune Media IP Limited. They wanted to kill a lawsuit by the former head of another Chatham company. What is the average price for a luxury home in Grasse, France? 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. Subscribe to WhaleWisdom to view all filing data 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. Chatham did not respond to questions about how exposed taxpayers and pension systems might be to AMI and any financial consequences of its legal entanglements. 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. Chatham Asset Management . The investigation was supervised by Sheldon Pollock. Katherine Burton, Sridhar Natarajan and Shahien Nasiripour, Bloomberg News, National Enquirer tabloid newspapers. Use the CB Insights Platform to explore Chatham Asset Management's full profile. Yet, over the years questions have swirled around Chatham. 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. The notes dont pay regular interest in cash, a sign of their inherent riskiness. Chatham is not a newcomer to the news industry. All text and design is copyright 2020 WhaleWisdom.com. Whalewisdom has at least 9 13F filings, 19 13D filings, 29 13G filings, and 127 Form 4 filings Summary Holdings Ind. 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. 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. Since it was founded in 2001, Seaport Global has been in full compliance with all laws and regulations governing our industry, the company said in a statement. A spokeswoman for Cohen declined to comment, and a spokesman for American Media and Pecker didnt respond to requests for comment. Yet its junior bonds offer yields comparable to more senior securities. At least one executivethe one Cohen and Pecker sparred withhas accused the New Jersey firm of market manipulation. Chatham has been restructuring their debt to give them more time. CHATHAM ASSET HIGH YIELD OFFSHORE FUND, LTD. CHATHAM ASSET PARTNERS HIGH YIELD FUND, L.P. 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. Behind the salacious headlines was an issue thats drawing scrutiny from regulators: bond prices. Thats because they are losing to him.. 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. 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. Those investments amounted to a bet that the companies would acquire competitors and cut costs. Yet its junior bonds offer yields comparable to more senior securities. Hedge funds are certainly profit-oriented, Mr. Longo said. In all three cases, Chatham bought most of the subordinated bonds, plus stock. The company that is poised to take control of McClatchy and its 29 daily papers doesnt have a website. 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 court and regulators must approve the deal. 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. Chatham said at the time that the allegations were baseless and without merit. The hedge fund is run by Anthony Melchiorre, a GOP donor who reportedly met with the president and AMI CEO David Pecker at the White House soon after Trump took office. Sad. 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. Alden Global Capital controls roughly 200 outlets through its newspaper chain, MediaNews Group. The two parties also agreed jointly and severally to pay $11 million in disgorgement and about $3.4 million in prejudgment interest, and civil penalties of $4.4 million and $600,000, respectively. (Another Postmedia creditor, the hedge fund Canso Investment Counsel, is being paid back more quickly based on an earlier agreement.). Clearly, the writing is on the digital wall. John Kasichs appointeescommitted$125 million to Chatham. Contact. Federal regulators have been asking questions, too. The guy who will be drawing the blood, Anthony Melchiorre, apparently is a piece of work. 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. Fortune said Melchiorre wasnt a particularly good fit at the firm and irritated some senior executives. 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. This is all very bad news for The Kansas City Star and the other McClatchy papers. Owning a majority of the approximately $1.2 billion in outstanding principal amount of 11% first lien senior secured notes due 2026, and virtually all of the approximately $439 million in outstanding principal amount of 13% second lien senior secured notes due 2027. Shortly after, Postmedia announced it would shut down all 24 newsrooms it had acquired, except for one, according to public filings. Offers may be subject to change without notice. Its no wonder Chathams side would enlist Cohen, long known for his doggedness on behalf of Trump. Hedge funds and private equity firms have had a growing presence in the news industry, to the chagrin of press advocates who argue that financial firms do not make civic-minded stewards of a business built largely on holding the powerful to account. In 2013, former New Jersey Gov. I am personally appalled by the Enquirer being an accessory to Cohens criminal behavior on behalf of the candidate, said Tom Bruno, a state union representative who is the chairman of the pensions board of trustees and serves on New Jerseys State Investment Council, which oversees the pension systems investments. Their bonds, though, havent suffered. 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. 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. Main Office Hedge fund manager Chatham Asset Management and founder Anthony Melchiorre agreed to pay $19.4 million to settle Securities and Exchange Commission charges that the firm improperly traded fixed-income securities, the SEC announced Monday. Postmedia and Torstar concluded the deal with no cash changing hands. There, they tried to prevent him from pursuing a lawsuit accusing Chatham-backed iPayment and its board member Pecker of ousting him unfairly. American Media acquired her story for $150,000 and never published it, a practice known as catch-and-kill. 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. Posted in Uncategorized | 5 Comments. The companys C.E.O., Anthony Melchiorre, doesnt give interviews, and no photo of him is available online. In the same period, it spent nearly $127 million on debt payments. They make money for their clients.. Well, this company, Chatham Asset Management, doesnt do a lot that would make it want to call attention to itself. What a great word! Thats because they are losing to him.. 6LinkedIn 8 Email Updates. New York, NY 10017-4036, Chicago Office Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. Anyone can read what you share. As a family-owned business headquartered in New Jersey, Trinity Solar is excited to interact with families and members of []. Chatham Asset Management LLC, a private investment firm headquartered in Chatham, on May 16 submitted a letter of interest to acquire San Antonio-based Vericast from MacAndrews & Forbes Inc. for roughly $2.85 billion. This post has been updated with additional information from Calpers and the Ohio pension system. Chatham Asset Management is based out of Chatham. Finally, they agreed to prohibitions from serving in certain positions in the investment industry, pursuant to the Investment Company Act. 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 . When Walt Disney Co. bought The Star and its parent company, Capital Cities/ABC, in 1995, Disney C.E.O. New Jersey, which has generated a more-than 12% annualized return on its investment, is entitled to withdraw $355 million from one of Chathams funds at the end of this year. 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. How fitting. Its pretty frustrating, said Brian Gibson, the president of the local union that represents 140 members of the editorial staff at Postmedias Vancouver papers. Chatham took a financial interest in McClatchy not long after its financial troubles began. While he was wrangling with Chatham, news trucks were parked outside his house for days. But many dailies remained sources of reliable cash flow, making them attractive investments for owners focused on maximizing returns. 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. John Longo, a professor at Rutgers Business School, said such ownership did not necessarily mean a disregard for journalism. The investigation remains active, according to an agency representative. Their bonds, though, havent suffered. For the sake of McClatchys approximately 2,800 employees (for comparisons sake, The Star alone had more than 2,000 employees about 20 years ago), Im sorry to say things could get a lot worse before theres any chance of getting better. Indications are hes been with Chatham more than 15 years. Behind the salacious headlines was an issue thats drawing scrutiny from regulators: bond prices. There are people who dont like him. As a subscriber, you have 10 gift articles to give each month. The consultant reviewed Chatham's trading annually for compliance with applicable laws and did not alert the firm to any issues. Advisor Info 13D/G Insider (Form 4) Ownership/Private Fund Data You also have the option to opt-out of these cookies. 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.. Playing tough is the Chatham way. 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. They stay away from editorial matters but tend to focus on finding efficient ways to cut costs, according to two of the people. in McClatchy, to the point where it became not only the companys largest shareholder but also its biggest creditor. STAY CONNECTED Chatham Asset Management and its founder, Anthony Melchiorre, have agreed to settle charges they violated U.S. laws designed to protect investors when they bought and sold bonds in. 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. Performance Aiysha Johnson will take the helm of the 13,000-plus member organization following Ralph Albert Thomas' June r[], The Englewood-based advisory firm has entered into an agreement to buy Brainard Capital Management of Austin, [], The 29-year-old and conspirators engaged USPS employees to steal the charge cards from the mail in exchange fo[], The CEO of Toorak Capital Partners offers an analysis of the current residential real estate market, the firm'[], Small businesses are the backbone of our economy. Under Chatham, Postmedia has consolidated editorial operations to create what company insiders call common pages. National and political coverage is often prepared at a central site, and content from The National Post is inserted into newspapers across Postmedia. Many hedge funds look to acquire companies that, while they may be failing, still generate a lot of cash. In all, the two companies closed 36 of the 41 newspapers that were part of the unusual deal, resulting in 291 job losses. By Sabela Ojea. Bob Hepburn, a Torstar spokesman, said, Torstar continues to cooperate with the bureau in its investigation.. Washington D.C., April 3, 2023 . Its bonds rarely change hands. Freelance budgets have shrunk at Postmedia, and travel expenses have been severely curtailed, the people said. Chatham owns the majority of Postmedia shares and the debt, but because of a Canadian law that limits non-Canadian control of media properties, it cannot exercise full control over the business. Even before the pandemic, Postmedia saw a falloff in advertising, once the lifeblood of newspapers. Chatham haswarnedthat its investments are risky and that a client may lose its entire investment in a troubled company. In early 2018, private equity giant BlackstoneremovedChatham from one of its major investment funds. View Last Form Adv Compilation Report on Record, LIMIT THE USE OF MY SENSITIVE PERSONAL INFORMATION, % of top 20 holdings the same as top 20 most commonly held by all managers. Thoserecordsshow the original $500 million investments are now worth as much as $692 million. Grimstad claimed Chatham artificially drove down the price of the bonds by almost 30% in a single trade, effectively blocking a debt-restructuring effort so it could capture control of the company. Just sad. Although not physically imposing, Melchiorre could be foul-mouthed and loud, and would berate fellow traders as he bopped around the trading floor in his stocking feet. There, they tried to prevent him from pursuing a lawsuit accusing Chatham-backed iPayment and its board member Pecker of ousting him unfairly. But Im not now. This will schedule a job to export all requested 13f holdings data for this filer. You are limited to the prior 8 quarters of 13F filings. Chatham and Melchiorre consented to the SECs order, without admitting or denying its findings, that they violated Section 206(2) of the Investment Advisers Act of 1940, and that they aided and abetted and caused violations of the Investment Company Act of 1940. When Knight Ridder bought The Star and three other Disney-owned papers in 1997, Im pretty sure Knight Ridder C.E.O. /s/ Anthony Melchiorre Anthony Melchiorre Managing Member Contacts. The order further finds that these trades were executed at prices Chatham and 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. I wouldnt even begin to consider owning it at that level. Grimstad claimed in filings that Chatham had manipulated iPayment bonds to seize control of the company. In the interest letter to Vericast CEO John O'Malley, Chantham Managing Member Anthony Melchiorre detailed CAM's longstanding investments in the company, including: Serving as the lead backstop. Fauci says the general public somehow didnt get his messaging that the vulnerable are really, really heavily On Thursday, Lyfts new CEO laid off over 1,000 employees. 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. Apr 3, 2023 11:40 AM PDT. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Improper Fixed Income Securities Trading. Any McClatchy employees hoping that Chatham might not be as bad as the hedge fund Alden Global Capital, which has decimated the Denver Post and other papers in its stranglehold, should consider this: Chatham is the majority owner of American Media, which owns the tabloid National Enquirer which hardly recommends Chatham as a potential restorer of the 29-paper chain to the newspaper industrys top ranks. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. 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. The 2016 presidential campaign had just ended, and Michael Cohen was fresh off handling hush money for Donald Trump. In all three cases, Chatham bought most of the subordinated bonds, plus stock. With McClatchy, the hedge fund also designed a trade aimed at reaping a windfall through credit-default swaps. Chatham CEO Anthony Melchiorre and McClatchy CEO Craig Forman assuming Forman stays in place both believe in the . In the last two fiscal years that ended in August, Postmedia booked losses totaling about $40 million in Canadian dollars. The New York Post put the story on its front page under the headline Frisky Business. (Grimstad has called those allegations false and meritless.). Alpes Maritimes is part of the Provence-Alpes-Cte d'Azur region. Donnelley & Sons, McClatchy, Postmedia and Accelerate360. Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. The SEC would like to thank the Financial Industry Regulatory Authority for its assistance with this matter. American Media now owes debtholders in excess of $1 billion, more than the book value of its assets. Postmedia, where Pecker sat on the board until last August, has posted annual losses for most of the past decade. Californias pension fund also has a $235 million stake in a Chatham fund. The company did not immediately return NJBIZs request for comment about Chathams letter of interest. Anthony Melchiorre has an ownership stake in Chatham Asset Management, LLC of between 50% and 75%. McClatchy did not disclose terms. Still, Chatham can elect one-third of Postmedias board, and it has debt covenants that give it huge sway over its long-term plans. (Bloomberg) -- The threat was blunt: Back off, or there will be trouble. American Media now owes debtholders in excess of $1 billion, more than the book value of its assets. Sign-up Sort: $5,409,230. It was a lucrative move. What a perfect synecdoche. It even offered lower yields than some blue-chip companies. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Long-term clients include the state pension fund of Chathams home state, New Jersey. Melchiorre, 55, owned roughly 70 percent of the company during the relevant period and is the managing member of the general partner entity for each of the funds. 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.. The owner, (whose only hope to save journalism in this second or third tier town), is digital publishinghas no web site! 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. Despite the losses, Postmedia has managed to shunt most of its cash toward paying off its heavy debt load, which ultimately will benefit Chatham. Thats exactly what happened. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. Chatham and Mr. Melchiorre consented to the SEC's order without admitting or denying its findings. After sinking their claws into such companies, they suck out the cash and invest the money elsewhere, where they can get better, surer returns. A similar story has unfolded at newspaper publisher McClatchy, which has posted annual losses since 2015. Anthony is Managing Member/Portfolio Manager and has served as Managing Member/Portfolio Manager since 09/01/2003. 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. 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.. Tony Ridder came to the newsroom and spoke, although he was such a stone of a personality I dont specifically remember it. 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. Gary Pruitt came to the newsroom. Fast Company & Inc 2023 Mansueto Ventures, LLC, State pension funds invested millions in hedge fund that controls National Enquirer parent. Hes a street fighter, said Mike Rankowitz, his boss at Morgan Stanley. This story was co-published with MapLight and Capital & Main. 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[]. It declined to comment further. 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 . AMI represents a large portion of Chathams portfolio. Chatham and Melchiorre agreed jointly and severally to pay $11 million in disgorgement and around $3.4 million in prejudgment interest. When completed, an email will be sent to the email address you specify The ugly litigation with the tech executive was resolved with a less-than-remorseful apology and a multimillion-dollar payday for Grimstad. That deal still has not closed. Best known for its luridEnquirerheadlines (Aliens Are Living in My Toilet), AMI has been beset by a difficult environment for print publications. The finance industry is also a key component of the largest American newspaper chain, Gannett, which publishes USA Today, The Arizona Republic and 250 other dailies. Chatham and Melchiorre agreed to pay more than $19.3 million in combined disgorgement, prejudgment interest, and civil penalties to settle the charges. personalized celebrity autographs,
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