[1]: [2]: Yet, over the years questions have swirled around Chatham. 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. House in Cabris, Provence-Alpes-Cte d'Azur, France. 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. Shadowy and scaryThat's the prospective new owner of The Star and the Investment Advisor 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. If they dont do a good job serving their community, the profits wont follow.. Cohens involvement was detailed by people with knowledge of the talks. There are people who dont like him. Internal hedge fund records from late 2017 show that AMI investments comprised 23 percent of the Chatham Asset Partners High Yield Funds portfolio. 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 regulator declined to comment. An SEC spokesman declined to comment. This story was co-published with MapLight and Capital & Main. Thanks, Tracy. Postmedia, where Pecker sat on the board until last August, has posted annual losses for most of the past decade. Sports coverage has been trimmed. 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. But Im not now. The firm and its founder, Anthony Melchiorre, have a reputation for hard-edged business. Chatham investment firm moves to acquire Vericast for $2.85B Frank Casey will take over as head of the New Jersey Resources business, effective July 1. 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.. 685 Third Avenue Thats because they are losing to him.. When Knight Ridder bought The Star and three other Disney-owned papers in 1997, Im pretty sure Knight Ridder C.E.O. What a perfect synecdoche. 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. Its bonds rarely change hands. Chatham investment firm moves to acquire Vericast for $2.85B. 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. Behind the salacious headlines was an issue thats drawing scrutiny from regulators: bond prices. 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. Melchiorre and his wife have donated more than $100,000 to Republican candidates and party committees since 2010. (The most memorable thing he said was Disney would not be selling the papers anytime soon, but they were on the block a year later.). Anthony Melchiorre is the Founder & Managing Member of Chatham Asset Management. During the coronavirus shutdown, Postmedia has made further cuts, laying off 80 employees and closing down 15 community papers. 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. Under Hedge Fund Set to Own McClatchy, Canadian Newspapers Endured Big Bob Hepburn, a Torstar spokesman, said, Torstar continues to cooperate with the bureau in its investigation.. Luxury Homes for Sale in Grasse, Provence Alpes Cte D'azur, France In 2016, the Financial Industry Regulatory Authority opened a review of the brokerage Seaport Global Securities that, while focusing on that firm, included an examination of its relationship with Chatham, people familiar with the matter said. Suite 3200 Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. Alden Global Capital controls roughly 200 outlets through its newspaper chain, MediaNews Group. 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. 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. Whalewisdom has at least 9 13F filings, 19 13D filings, 29 13G filings, and 127 Form 4 filings. By Sabela Ojea. Despite the companys financial distress, its bonds traded near par until December, and after dropping, have been climbing back. 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. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Improper Fixed Income Securities Trading. 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. SEC employees have questioned the firm on subjects including its pricing of bonds and conversations with various bond dealers. 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. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. Alpes Maritimes is part of the Provence-Alpes-Cte d'Azur region. Chatham Asset Management Increases Offer to Acquire R.R. Donnelley to 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. With this significant deleveraging and potential additional synergies to be realized with other Chatham portfolio companies, we would anticipate to refinance the capital structure at more favorable rates and lower the companys cash interest payments by approximately $100 million to $150 million per year on a pro forma basis, thereby substantially enhancing the companys financial flexibility.. Anthony Melchiorre has an ownership stake in Chatham Asset Management, LLC of between 50% and 75%. As a subscriber, you have 10 gift articles to give each month. Well, this company, Chatham Asset Management, doesnt do a lot that would make it want to call attention to itself. 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. the MV of securities sold, whichever is less, Cohens assignment: Get Carl Grimstad, the recently fired CEO of payments processor iPayment Holdings, to the table. Chathams tabloid publisher possesses a treasure trove of Trumps secrets, his former fixer Cohen told Congress last month. Offers may be subject to change without notice. The new, supersize version of Gannett resulted from a merger last year between Gannett and the parent of GateHouse Media. Grimstad claimed in filings that Chatham had manipulated iPayment bonds to seize control of the company. Subscribe for access to the latest digital and special editions. Michael Eisner came to the newsroom. Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. Subscribe to Well Adjusted, our newsletter full of simple strategies to work smarter and live better, from the Fortune Well team. It declined to comment further. In 2013 and 2014, an Ohio pension system partially controlled by Gov. Katherine Burton, Sridhar Natarajan and Shahien Nasiripour, Bloomberg News, National Enquirer tabloid newspapers. Download 13F Summary He built his stature as a temperamental money-maker at the white-shoe firm. The headquarters of Chatham Asset Management in Chatham, N.J. The company that is poised to take control of McClatchy and its 29 daily papers doesnt have a website. 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. Chatham Asset Management to Pay $19.3M to Settle SEC Charges House in Cabris, Provence-Alpes-Cte d'Azur, France. Fast Company & Inc 2023 Mansueto Ventures, LLC, State pension funds invested millions in hedge fund that controls National Enquirer parent. 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). 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. He is the founder and principal owner of Chatham. As part of it, Postmedia traded 17 of its papers to Torstar in exchange for 24 Torstar papers. Seaport Global defended its practices. Those investments amounted to a bet that the companies would acquire competitors and cut costs. Finra, the brokerage industrys main watchdog, subsequently concluded its review, and its unclear what if anything resulted from it. Within weeks, the notes were back at about par. 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. It even offered lower yields than some blue-chip companies. Enter your email address to subscribe to this blog and receive notifications of new posts by email. Currently investing in Vericasts term loan facility due 2026. 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. 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. Yet its junior bonds offer yields comparable to more senior securities. At least one executive - the one Cohen and Pecker sparred with -- has accused the New Jersey firm of market manipulation. Seaport Global defended its practices. 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. Newsonomics: Six takeaways from McClatchy's bankruptcy 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. I was there. 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. Just sad. The $1.4 billion pension plan, created 75 years ago, was intended to provide money to more than 24,000 current and future retirees. Your California Privacy Rights/Privacy Policy. Shortly after, Postmedia announced it would shut down all 24 newsrooms it had acquired, except for one, according to public filings. 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. . Snap CEO Evan Spiegel wiped out over $10 million in student loans for an entire graduating class. The firm and its founder, Anthony Melchiorre, have a reputation for hard-edged business. AMI executives helped Cohen purchase stories that could have hurt Trumps presidential bid, according to theWall Street Journal. I wouldnt even begin to consider owning it at that level. Chatham Asset Management is based out of Chatham. We give you the access and tools to invest like a Wall Street money manager at a Main Street price. 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. They make money for their clients.. Even before the pandemic, Postmedia saw a falloff in advertising, once the lifeblood of newspapers. What is the average price for a luxury home in Grasse, France? The 2016 presidential campaign had just ended, and Michael Cohen was fresh off handling hush money for Donald Trump. Traders have privately criticized what they see as lofty valuations of illiquid securities. At least five other traders whove looked at the bonds say their prices seem too good to be true. Price swings on the trades described in the lawsuit marked the biggest-ever percentage changes in those securities, data reviewed by Bloomberg show. The merger took place in November 2017, about a year after Chatham took majority ownership. Freelance budgets have shrunk at Postmedia, and travel expenses have been severely curtailed, the people said. 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. 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. It borders on the departments of Var and Alpes-de-Haute-Provence, and Italy to the east. divided by the total MV of the fund. 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. 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. 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. These cookies will be stored in your browser only with your consent. This will schedule a job to export all requested 13f holdings data for this filer. Yet its junior bonds offer yields comparable to more senior securities. Price swings on the trades described in the lawsuit marked the biggest-ever percentage changes in those securities, data reviewed by Bloomberg show. 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. It declined to comment further. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. Chatham is led by Anthony Melchiorre, a Chicago-area native who once worked at Morgan Stanley, where he led the junk bond division. (Bloomberg) -- The threat was blunt: Back off, or there will be trouble. The information you requested is not available at this time, please check back again soon. When Walt Disney Co. bought The Star and its parent company, Capital Cities/ABC, in 1995, Disney C.E.O. And given the strains in the print-media business, the strong price of the debt is difficult to explain, traders say. Chatham Asset Management Submits Indicative Bid to Acquire Vericast How do I update this listing? Apr 3, 2023. We have less boots on the ground, Mr. Gibson said. 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. I can almost guarantee you there will be staff cuts at most or all of those newspapers. At least one executivethe one Cohen and Pecker sparred withhas accused the New Jersey firm of market manipulation. But many dailies remained sources of reliable cash flow, making them attractive investments for owners focused on maximizing returns. 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. Those zero-coupon bonds maturing in 2024 offered lower yields than five-year U.S. government bonds over several months last year. 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. There are people who dont like him. 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. This is all very bad news for The Kansas City Star and the other McClatchy papers. Named after the leafy suburb where its based, Chatham has posted average annual returns of about 10 percent, trouncing many of its competitors. Sort: $5,409,230. Even with the cuts it has endured over the past 15 years, The Bee remains the most significant source of original reporting and enterprise in our community, Sacramentos mayor, Darrell Steinberg, wrote in a May letter to the bankruptcy court.
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