Something other than fundamentals are playing a huge factor in those bonds., In response to questions about the prices, Melchiorre sent a statement through a representative: We have tremendous conviction in our fundamental thesis on late stage media consolidation in North America and competitors are free to express opposing views.. containing a link to download the .zip file of the CSV file(s) you requested. After several stints at elite firms like Goldman Sachs and Morgan. Managers Inv. $5,850,800. In the last two fiscal years that ended in August, Postmedia booked losses totaling about $40 million in Canadian dollars. 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. Playing tough is the Chatham way. 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. That deal still has not closed. 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.. As part of it, Postmedia traded 17 of its papers to Torstar in exchange for 24 Torstar papers. Hedge funds and private equity companies have become a force in the news industry. Chatham Asset Management is based out of Chatham. There are often clauses in agreements between pension funds and hedge funds that give states certain rights and recourse if they believe retirees money has been invested in companies engaging in criminal activity, he said. Playing tough is the Chatham way. 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. Find more info on AllPeople about Anthony Melchiorre and Chatham Asset Management, as well as people who work for similar businesses nearby, colleagues for other branches, and more people with a similar name. Main Office It borders on the departments of Var and Alpes-de-Haute-Provence, and Italy to the east. Postmedia and Torstar concluded the deal with no cash changing hands. Apr 3, 2023. Blue Sky Digital Outdoor Advertising Fund Fund Data, Sarasin Ie Global Equity Opportunities (Usd) Fund Data, Themelios Ventures Ii-A, L.P. Fund Data. Torstar closed all but four of the 17 papers it had received. The 2016 presidential campaign had just ended, and Michael Cohen was fresh off handling hush money for Donald Trump. From 2016 through 2018, one Chatham-advised client sold certain American Media Inc. bonds while a different Chatham-advised client purchased the same bonds through various broker-dealers, according to the SEC. 685 Third Avenue Chatham Asset Management to Pay $19.3M to Settle SEC Charges. 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. SEC employees have questioned the firm on subjects including its pricing of bonds and conversations with various bond dealers. Tenth Floor Necessary cookies are absolutely essential for the website to function properly. I wouldnt even begin to consider owning it at that level. Their bonds, though, havent suffered. Sad. Within weeks, the notes were back at about par. From shortly after the merger to the end of 2018, McClatchys work force was cut from more than 15,000 full-time employees to around 3,300, according to public filings. Chrome Extension. Anthony is Managing Member/Portfolio Manager and has served as Managing Member/Portfolio Manager since 09/01/2003. 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. In that sense, they are perfect victims for scavengers. We have less boots on the ground, Mr. Gibson said. 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. 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. 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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. That kind of showing helped the firm attract $300 million from investors this quarter, a person familiar with the matter said. 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. At least one executivethe one Cohen and Pecker sparred withhas accused the New Jersey firm of market manipulation. For the low-profile Chatham, American Media has become a high-profile headache. Yet its junior bonds offer yields comparable to more senior securities. Like Warren Buffett, Wall Street traders and just about everyone else, Chatham has no illusions about where the newspaper industry is headed; it just wants to bleed them of cash, or, perhaps, sell them at a nice profit to another chain. 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. Its no wonder Chathams side would enlist Cohen, long known for his doggedness on behalf of Trump. 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. Chatham already owns about half of the outstanding indebtedness of the marketing company, explaining that the purchase price is the value of outstanding indebtedness. The expected deal to sell The Sacramento Bee, McClatchys flagship publication, and other newspapers to a New Jersey hedge fund will end 163 years of family ownership. Snap CEO Evan Spiegel wiped out over $10 million in student loans for an entire graduating class. 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. 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. Anthony Melchiorre, Chatham Asset Management, LLC: Profile and Biography - Bloomberg Markets Bloomberg Terminal Demo Request Bloomberg Connecting decision makers to a dynamic network of. That kind of showing helped the firm attract $300 million from investors this quarter, a person familiar with the matter said. Last year, barely three months before Christie left office, his administrationsteeredanother $200 million to another Chatham vehicle. 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. Suite 3200 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. Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. Anthony Melchiorre has served as Managing Member/Portfolio Manager of Chatham Asset Management, LLC since 2003. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Improper Fixed Income Securities Trading. In 2013 and 2014, an Ohio pension system partially controlled by Gov. 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.. 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. 2023 Fortune Media IP Limited. Posted in Uncategorized | 5 Comments. Yes, Tony Ridder came to The Star newsroom when KR bought the paper. With McClatchy, the hedge fund also designed a trade aimed at reaping a windfall through credit-default swaps. 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. You also have the option to opt-out of these cookies. He set up his hedge fund in Chatham, N.J., in 2002. It was a lucrative move. The iPayment case thrust questions about Chathams bond-trading methods into the open. Still, Chatham can elect one-third of Postmedias board, and it has debt covenants that give it huge sway over its long-term plans. Chatham itself has been undergoing its first ever exam by the SECs inspections division, according to people familiar with the 16-year-old firm. At least five other traders whove looked at the bonds say their prices seem too good to be true. It doesnt employ a lot of people, and I doubt if it sponsors arts organizations and gives to charities in Chatham. Cohens assignment: Get Carl Grimstad, the recently fired CEO of payments processor iPayment Holdings, to the table. AMI executives helped Cohen purchase stories that could have hurt Trumps presidential bid, according to theWall Street Journal. Thats exactly what happened. 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. 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 had waited patiently for Thursday, and now its in the catbird seat, waiting for the Chapter 11 bankruptcy proceedings to play out and then take charge. 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. 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. 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.. They also agreed to pay civil penalties of $4,400,000 and $600,000, respectively. But Mr. MacLeod, the chief executive, acknowledged complaints about the cuts. Sue, Chatham lawyers warned, and well drag your family into this, according to court testimony. Its no wonder Chathams side would enlist Cohen, long known for his doggedness on behalf of Trump. 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. Found 4 colleagues at Chatham Asset Management. (One of the people whom Chatham installed on the Postmedia board was Daniel Rotstein, a consultant for American Media.). Internal hedge fund records from late 2017 show that AMI investments comprised 23 percent of the Chatham Asset Partners High Yield Funds portfolio. AMIhas deniedit helped Trumps campaign, although Pecker was recently granted immunity as part of the Cohen probe. The consultant reviewed Chatham's trading annually for compliance with applicable laws and did not alert the firm to any issues. 5.Anthony Melchiorre, age 55, resides in Short Hills, New Jersey. Their bonds, though, havent suffered. By clicking Accept, you consent to the use of ALL the cookies. If asked to vote, I can assure you I will be voting for us to divest, he said. 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. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. This category only includes cookies that ensures basic functionalities and security features of the website. Position: Managing Member/Portfolio Manager, Company/Fund Name: Chatham Asset Management, LLC, Address: 26 Main Street, Suite 204, Chatham, NJ, 7928, United States. I can almost guarantee you there will be staff cuts at most or all of those newspapers. 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. 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). It even offered lower yields than some blue-chip companies. 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. All text and design is copyright 2020 WhaleWisdom.com. CHATHAM, NJ Despite the losses, Postmedia has managed to shunt most of its cash toward paying off its heavy debt load, which ultimately will benefit Chatham. in McClatchy, to the point where it became not only the companys largest shareholder but also its biggest creditor. He built his stature as a temperamental money-maker at the white-shoe firm. Melchiorre and his. Indications are hes been with Chatham more than 15 years. Download 13F Summary While he was wrangling with Chatham, news trucks were parked outside his house for days. Subscribe to WhaleWisdom to view all filing data As far as leadership goes, I feel like the way they talk about it, were almost operating like a sales agency, not a news service, Mr. Gibson, the union leader, said. 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. 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. Postmedia, where Pecker sat on the board until last August, has posted annual losses for most of the past decade. 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. And in 2006, when McClatchy bought out Knight Ridder, McClatchy C.E.O. Photographer: Luke Sharrett/Bloomberg 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. 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. When Knight Ridder bought The Star and three other Disney-owned papers in 1997, Im pretty sure Knight Ridder C.E.O. 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. After years of declines in revenue and print circulation, the McClatchy Company, one of the largest and most respected news publishers in the country, announced on Sunday that it expected to be bought by Chatham Asset Management, a New Jersey hedge fund, at the conclusion of a bankruptcy auction. Thanks, Tracy. Michael Eisner came to the newsroom. Chatham Asset Management . No, I dont think hell be visiting the newsroom and talking about Chathams plans for the paper. 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. An SEC spokesman declined to comment. 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). 130 E. Randolph St. Pressure has been building. They wanted to kill a lawsuit by the former head of another Chatham company. Chatham is led by Anthony Melchiorre, a Chicago-area native who has earned a reputation on Wall Street as a tough negotiator. 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. 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. CHATHAM ASSET HIGH YIELD OFFSHORE FUND, LTD. CHATHAM ASSET PARTNERS HIGH YIELD FUND, L.P. John Longo, a professor at Rutgers Business School, said such ownership did not necessarily mean a disregard for journalism. In the same period, it spent nearly $127 million on debt payments. Luxury Homes for Sale in Cabris, Provence Alpes Cte D'azur, France. Then theres American Media. 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. Alpes Maritimes is part of the Provence-Alpes-Cte d'Azur region. In April, the company said it had received a Chatham-led bid worth more than $300 million. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. . Chatham Asset Management provides investment advisory services. 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. In 2013, former New Jersey Gov. 13F filing from CHATHAM ASSET MANAGEMENT, LLC, enter your As weak as these papers are and as far as they have fallen, they still throw off lots of cash. He built his stature as a temperamental money-maker at the white-shoe firm.
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