Chatham has tried to unload The Enquirer. 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 Chrome Extension. Enter your email address to subscribe to this blog and receive notifications of new posts by email. With roots going back to 1857, McClatchy, a consistent winner of top journalism awards, was one of the last major family-run news publishers. In all three cases, Chatham bought most of the subordinated bonds, plus stock. And it means that a news company known for winning top journalism prizes is likely to become the property of a firm that owns The National Enquirer and other supermarket tabloids. Hedge Fund 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. 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. 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. 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. Finally, they agreed to prohibitions from serving in certain positions in the investment industry, pursuant to the Investment Company Act. The notes dont pay regular interest in cash, a sign of their inherent riskiness. 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 information you requested is not available at this time, please check back again soon. Both have had roles in Chathams other media company, American Media, the publisher of The National Enquirer and other supermarket tabloids. Any statement or implication otherwise is false. Chatham hasnt denied Cohens participation in the meeting. These cookies do not store any personal information. Chatham is led by Anthony Melchiorre, a Chicago-area native who has earned a reputation on Wall Street as a tough negotiator. Chatham Asset Management Increases Offer to Acquire R.R. Anthony is Managing Member/Portfolio Manager and has served as Managing Member/Portfolio Manager since 09/01/2003. Sanjay Wadhwa, deputy director of the SEC's enforcement division, said in a statement that Chatham's 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. 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. 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 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. 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. 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. Chatham is a credit investment firm with investments in the print media and marketing communications industries, including investments in R.R. Thats something we wrestle with, he said. Chatham is not a newcomer to the news industry. Chatham and the Enquirer 's publisher, David Pecker, had turned to. Californias pension fund also has a $235 million stake in a Chatham fund. The threat was blunt: Back off, or there will be trouble. That kind of showing helped the firm attract $300 million from investors this quarter, a person familiar with the matter said. Grimstad claimed Chatham artificially drove down the price of the bonds by almost 30 percent in a single trade, effectively blocking a debt-restructuring effort so it could capture control of the company. They also agreed to pay civil penalties of $4,400,000 and $600,000, respectively. 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. FORTUNE may receive compensation for some links to products and services on this website. What a perfect synecdoche. John Kasichs appointeescommitted$125 million to Chatham. the MV of securities sold, whichever is less, . Chatham itself has been undergoing its first ever exam by the SECs inspections division, according to people familiar with the 16-year-old firm. Alden Global Capital controls roughly 200 outlets through its newspaper chain, MediaNews Group. Its pretty frustrating, said Brian Gibson, the president of the local union that represents 140 members of the editorial staff at Postmedias Vancouver papers. While he was wrangling with Chatham, news trucks were parked outside his house for days. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. Washington D.C., April 3, 2023 . 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. Suite 3200 1 Twitter 2 Facebook 3RSS 4YouTube $5,850,800. 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. Frank Casey will take over as head of the New Jersey Resources business, effective July 1. This is all very bad news for The Kansas City Star and the other McClatchy papers. Sort: $5,409,230. Chathams trading has drawn scrutiny before. A spokeswoman for Cohen declined to comment, and a spokesman for American Media and Pecker didnt respond to requests for comment. 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. Thats exactly what happened. Powered and implemented by Interactive Data Managed Solutions. AMI represents a large portion of Chathams portfolio. And given the strains in the print-media business, the strong price of the debt is difficult to explain, traders say. Serving as the lead backstop investor in Vericasts multibillion dollar refinancing transactions in 2020 and 2021. "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. Under Republican governors, the two states committed at least $625 million of pension cash into Chatham Asset Management, a high-risk hedge fund that has taken control of theNational Enquirers parent company, American Media Inc., which is at the center of the federal investigation into President Donald Trumps 2016 campaign. Luxury Homes for Sale in Cabris, Provence Alpes Cte D'azur, France. New York, NY 10017-4036, Chicago Office 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 firm and its founder, Anthony Melchiorre, have a reputation for hard-edged business. Former FEC commissioner Trevor Potter, the head of the nonprofit Campaign Legal Center,last week said the situation presents a serious legal problem for AMI. If those legal troubles end up depressing the market value of AMI, teachers, firefighters, cops and other public employees also could potentially suffer losses at a time when their pension funds are alreadyfacingshortfalls. 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. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. The hedge fund also has officials who serve as directors at AMI. The owner, (whose only hope to save journalism in this second or third tier town), is digital publishinghas no web site! 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. Thats because they are losing to him.. SEC employees have questioned the firm on subjects including its pricing of bonds and conversations with various bond dealers. Michael Eisner came to the newsroom. A spokesman for the Ohio pension system said Thursday that the state asked for its money to be withdrawn from the Chatham fund in 2015; the money was redeemed in 2017. . It even offered lower yields than some blue-chip companies. Melchiorre also served as the. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. ", 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. I think Ill go to Egypt, Brazil and Africa before my $891.23 monthly pension check stops coming. I can almost guarantee you there will be staff cuts at most or all of those newspapers. It declined to comment further. 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. Cohens involvement was detailed by people with knowledge of the talks. 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. I have no regrets whatsoever about going with the monthly pension. Thats exactly what happened. Fast Company & Inc 2023 Mansueto Ventures, LLC, State pension funds invested millions in hedge fund that controls National Enquirer parent. I wouldnt even begin to consider owning it at that level. 5.Anthony Melchiorre, age 55, resides in Short Hills, New Jersey. Hes a street fighter, said Mike Rankowitz, his boss at Morgan Stanley. They wanted to kill a lawsuit by the former head of another Chatham company. The investigation remains active, according to an agency representative. In that sense, they are perfect victims for scavengers. Behind the salacious headlines was an issue thats drawing scrutiny from regulators: bond prices. It declined to comment further. They stay away from editorial matters but tend to focus on finding efficient ways to cut costs, according to two of the people. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Indications are hes been with Chatham more than 15 years. 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.. Anyone can read what you share. 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. Start Free Trial . At least five other traders whove looked at the bonds say their prices seem too good to be true. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. Pressure has been building. There are people who dont like him. Thanks, Tracy. It was a lucrative move. 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. The ugly litigation with the tech executive was resolved with a less-than-remorseful apology and a multimillion-dollar payday for Grimstad. Within weeks, the notes were back at about par. Postmedia, where Pecker sat on the board until last August, has posted annual losses for most of the past decade. 13 Beds 11 Baths 5920 sqft. 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. Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. You also have the option to opt-out of these cookies. Chatham and the Enquirers publisher, David Pecker, had turned to Trumps fixer as a mediator. Gary Pruitt came to the newsroom. 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 . They make money for their clients.. This category only includes cookies that ensures basic functionalities and security features of the website. A March 2019 Fortune magazine story said Melchiorre, who is either 51 or 52, was raised in Chicago, studied economics at Northwestern and got an MBA from the University of Chicago. Apr 3, 2023. The state has said its exploring its options in light of Bezoss claim that American Media tried to blackmail him. As a subscriber, you have 10 gift articles to give each month. A Chicago-area kid who studied economics at Northwestern and got an MBA from the University of Chicago, his high-toned education didn't reduce the intensity of the former high-school football star. Chatham CEO Anthony Melchiorre and McClatchy CEO Craig Forman assuming Forman stays in place both believe in the . 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. for Q1 2022: commodity pool operator or commodity trading advisor, Percentage of assets under management,Performance-based fees, CHIEF OPERATING OFFICER/CHIEF COMPLIANCE OFFICER, MEMBER/CHIEF OPERATING OFFICER/CHIEF COMPLIANCE OFFICER, MEMBER/CHIEF FINANCIAL OFFICER/CHIEF COMPLIANCE OFFICER, LIMITED PARTNER CHATHAM ASSET PARTNERS, LP, MANAGING MEMBER CHATHAM ASSET PARTNERS GP II, LLC, CHATHAM ASSET PRIVATE DEBT AND STRATEGIC CAPITAL FUND III, LP, CHATHAM ASSET PRIVATE DEBT AND STRATEGIC CAPITAL OFFSHORE FUND III, LP, CHATHAM ASSET PRIVATE DEBT AND STRATEGIC CAPITAL FUND, LP, Other Private Fund HYBRID DEBT AND STRATEGIC CAPITAL FUND. Chatham Asset Management, LLC (together with its affiliates, "we" or " Chatham "), is a New Jersey -based credit investment firm focused on rigorous, fundamentally-based research, with. --With assistance from Neil Weinberg and Matt Robinson. Create Email Alert, ***Log In or Chatham took on more American Media debt in recent months, getting Seaport to arrange a deal after Credit Suisse Group AG got cold feet amid public furor over the publishers antics in the 2016 presidential election. Price swings on the trades described in the lawsuit marked the biggest-ever percentage changes in those securities, data reviewed by Bloomberg show. You know a little about ledes (leads) yourself. Yet its junior bonds offer yields comparable to more senior securities. Anthony Melchiorre has an ownership stake in Chatham Asset Management, LLC of between 50% and 75%. A similar story has unfolded at newspaper publisher McClatchy, which has posted annual losses since 2015. containing a link to download the .zip file of the CSV file(s) you requested. Location Chatham, New Jersey, United States; Regions Greater New York Area, East Coast, Northeastern US; 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. At least five other traders whove looked at the bonds say their prices seem too good to be true. American Media now owes debtholders in excess of $1 billion, more than the book value of its assets. Postmedia (along with its external counsel) is strongly of the view that there has been no contravention of the Competition Act with respect to this matter, Phyllise Gelfand, a Postmedia spokeswoman, said in a statement. Chatham and Melchiorre agreed to pay . During that time, it invested relatively little, about $5.4 million, to try to improve the business. In its year-end financial results released March 3, Vericast reported 2021 consolidated net revenues decreased 2% and total adjusted EBITDA increased 6.2% compared with 2020. 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. A year later, 3 grads CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. With McClatchy, the hedge fund also designed a trade aimed at reaping a windfall through credit-default swaps. Thoserecordsshow the original $500 million investments are now worth as much as $692 million. (Bloomberg) -- The threat was blunt: Back off, or there will be trouble. 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 merger took place in November 2017, about a year after Chatham took majority ownership. 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. In 2018, Canadas Competition Bureau, a law enforcement agency that oversees commerce, opened an investigation into the transaction for possible anticompetitive conduct and has searched the offices of both Postmedia and Torstar. Anyone can read what you share. 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. 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. The Ohio pension system did not respond to questions about whether it will seek to divest assets from Chatham. The 2016 presidential campaign had just ended, and Michael Cohen was fresh off handling hush money for Donald Trump. You are limited to the prior 8 quarters of 13F filings. Anthony Melchiorre is the Founder & Managing Member of Chatham Asset Management. The company that is poised to take control of McClatchy and its 29 daily papers doesnt have a website. Importantly, the trading occurred more than four years ago in funds that have since been closed. Subscribe to Well Adjusted, our newsletter full of simple strategies to work smarter and live better, from the Fortune Well team. Sign-up Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Anthony Melchiorre, Chatham Asset Management, LLC: Profile and Biography - Bloomberg Markets Bloomberg Terminal Demo Request Bloomberg Connecting decision makers to a dynamic network of. Revenue has dropped an average of 10 percent a year since 2016. At least one executive - the one Cohen and Pecker sparred with -- has accused the New Jersey firm of market manipulation. Grimstad claimed in filings that Chatham had manipulated iPayment bonds to seize control of the company. Those zero-coupon bonds maturing in 2024 offered lower yields than five-year U.S. government bonds over several months last year. Since Chathams takeover of Postmedia, Mr. Ratner and Mr. Schwartz have checked in regularly with its management team. After stints at Donaldson, Lufkin & Jenrette and Goldman Sachs Group Inc., Melchiorre landed at Morgan Stanley in 1998 where he rose to head the junk-bond trading group. 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. 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. Get our free e-alerts & breaking news notifications! A bankruptcy court hearing on the matter is scheduled for July 24. Fortune said Melchiorre wasnt a particularly good fit at the firm and irritated some senior executives. The New York Post put the story on its front page under the headline Frisky Business. (Grimstad has called those allegations false and meritless.). The firms assets have doubled in the past three years. (One of the people whom Chatham installed on the Postmedia board was Daniel Rotstein, a consultant for American Media.). There are people who dont like him. Chatham and Melchiorre agreed jointly and severally to pay $11 million in disgorgement and around $3.4 million in prejudgment interest. 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. Position: Managing Member/Portfolio Manager, Company/Fund Name: Chatham Asset Management, LLC, Address: 26 Main Street, Suite 204, Chatham, NJ, 7928, United States. Chatham and Mr. Melchiorre consented to the SEC's order without admitting or denying its findings. Alden controls roughly 200 outlets through its newspaper chain, MediaNews Group. Chatham had the winning bid for the McClatchy Company, the family-run publisher of The Sacramento Bee and other papers. Sue, Chatham lawyers warned, and well drag your family into this, according to court testimony. John Longo, a professor at Rutgers Business School, said such ownership did not necessarily mean a disregard for journalism. Anthony Melchiorre has served as Managing Member/Portfolio Manager of Chatham Asset Management, LLC since 2003. Subscribe to WhaleWisdom to view all filing data Many hedge funds look to acquire companies that, while they may be failing, still generate a lot of cash. His behavior infuriated some senior executives, according to former colleagues. So glad that I turned 55 last year and was able to get my 401(k) the hell out of there and roll it into the one at my current employer. Shortly after, Postmedia announced it would shut down all 24 newsrooms it had acquired, except for one, according to public filings. Chatham would conduct required due diligence and documentation and is prepared to devote considerable resources to completing this transaction, Melchiorre stated. Whalewisdom has at least 9 13F filings, 19 13D filings, 29 13G filings, and 127 Form 4 filings. Chatham Asset Management provides investment advisory services. The companys C.E.O., Anthony Melchiorre, doesnt give interviews, and no photo of him is available online. That offer included the debt assumed by the hedge fund and its partners. 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. 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. This website uses cookies to improve your experience. 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. Playing tough is the Chatham way. There, they tried to prevent him from pursuing a lawsuit accusing Chatham-backed iPayment and its board member Pecker of ousting him unfairly. Snap CEO Evan Spiegel wiped out over $10 million in student loans for an entire graduating class. A March 2019 Fortune magazine story said Melchiorre, who is either 51 or 52, was raised in Chicago, studied economics at Northwestern and got an MBA from the University of Chicago. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Improper Fixed Income Securities Trading. Non-U.S. residents banned from purchasing tickets to Maple Leafs road games in Florida, Nearly one-third of Canadians worried about their vehicle getting stolen amid spike in thefts, Owe money to the CRA this tax season? American Media now owes debtholders in excess of $1 billion, more than the book value of its assets. 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 SEC would like to thank the Financial Industry Regulatory Authority for its assistance with this matter. 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. During the coronavirus shutdown, Postmedia has made further cuts, laying off 80 employees and closing down 15 community papers. 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. 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. There are 8 other people named Anthony Melchiorre on AllPeople. The hedge fund has become a major player in the news industry. The 2016 presidential campaign had just ended, and Michael Cohen was fresh off handling hush money for Donald Trump.
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