The 2016 presidential campaign had just ended, and Michael Cohen was fresh off handling hush money for Donald Trump. 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. Chatham investment firm moves to acquire Vericast for $2.85B. You also have the option to opt-out of these cookies. Chicago, IL 60601, Court backs SEC in lawsuit challenging proxy-rule rescission, Labor Department addresses FAQs for multiemployer pension plans receiving SFA, U.S. regulators propose strengthening oversight of non-banks, Sponsored Content: EDHEC Climate and Finance Special, The Institutional Investors Guide to ESG Investing, The Plan Sponsor's Guide to Retirement Income, 2023 Defined Contribution East Conference, SEC's rules moving too fast, industry says, SEC proposes requiring electronic submissions for nearly all forms, SEC seeks $2.4 billion in funding to boost staff numbers. Performance Anthony Melchiorre has an ownership stake in Chatham Asset Management, LLC of between 50% and 75%. New York, NY 10017-4036, Chicago Office Playing tough is the Chatham way. The Ohio pension system did not respond to questions about whether it will seek to divest assets from Chatham. 130 E. Randolph St. Washington D.C., April 3, 2023 . Melchiorre and his wife have donated more than $100,000 to Republican candidates and party committees since 2010. 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 Asset Management Increases Offer to Acquire R.R. 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. What a perfect synecdoche. But opting out of some of these cookies may have an effect on your browsing experience. As weak as these papers are and as far as they have fallen, they still throw off lots of cash. 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. 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. Chatham hasnt been accused of wrongdoing by authorities, and the fund had no comment on its interactions with federal inspectors. Best known for its luridEnquirerheadlines (Aliens Are Living in My Toilet), AMI has been beset by a difficult environment for print publications. Over time, Chatham has increased its investment (and sunk its teeth?) 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. Chatham said at the time that the allegations were baseless and without merit. 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. Pressure has been building. 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. 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. This will schedule a job to export all requested 13f holdings data for this filer. Chatham and the Enquirers publisher, David Pecker, had turned to Trumps fixer as a mediator. 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. At least five other traders whove looked at the bonds say their prices seem too good to be true. Chathams trading has drawn scrutiny before. 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.. I wouldnt even begin to consider owning it at that level. 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. 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. The hedge fundfinalized its dealto buy an ownership stake in AMI in the summer of 2014. 13 Beds 11 Baths 5920 sqft. 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. Postmedia and Torstar concluded the deal with no cash changing hands. Thats exactly what happened. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. Anthony Melchiorre is the Founder & Managing Member of Chatham Asset Management. The notes dont pay regular interest in cash, a sign of their inherent riskiness. 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. 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. John Kasichs appointeescommitted$125 million to Chatham. Its bonds staged an improbable rally last year, charting a steady climb over 50% from 80 to 125 cents on the dollar. Found 4 colleagues at Chatham Asset Management. Chatham took a financial interest in McClatchy not long after its financial troubles began. AMIhas deniedit helped Trumps campaign, although Pecker was recently granted immunity as part of the Cohen probe. This story was co-published with MapLight and Capital & Main. If asked to vote, I can assure you I will be voting for us to divest, he said. 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. There are people who dont like him. 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. His behavior infuriated some senior executives, according to former colleagues. 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. Even before the pandemic, Postmedia saw a falloff in advertising, once the lifeblood of newspapers. He is the founder and principal owner of Chatham. I was there. Chatham has been restructuring their debt to give them more time. 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.. 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. Chathams tabloid publisher possesses a treasure trove of Trumps secrets, his former fixer Cohen told Congress last month. Finra, the brokerage industrys main watchdog, subsequently concluded its review, and its unclear what if anything resulted from it. Chatham is led by Anthony Melchiorre, a Chicago-area native who has earned a reputation on Wall Street as a tough negotiator. Chris Christies administrationmoved$300 millionof pension cash into the Chatham Fund, LP, which hasowneda stake in AMI, according to SEC records. (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.). And in 2006, when McClatchy bought out Knight Ridder, McClatchy C.E.O. The regulator declined to comment. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. [1]: With a strategy that led to deep layoffs at The Denver Post and other publications, it has made money in an ailing business while angering journalists and press advocates who accuse the firm of diminishing local news publications and doing a disservice to the communities they cover. 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. 13F filing from CHATHAM ASSET MANAGEMENT, LLC, enter your New Jersey, which has generated a more-than 12 percent annualized return on its investment, is entitled to withdraw $355 million from one of Chathams funds at the end of this year. Powered and implemented by Interactive Data Managed Solutions. What is the average price for a luxury home in Grasse, France? 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. 11 Beds 11 Baths 5382 sqft. Then theres American Media. A spokeswoman for Cohen declined to comment, and a spokesman for American Media and Pecker didnt respond to requests for comment. He set up his hedge fund in Chatham, N.J., in 2002. Chatham itself has been undergoing its first ever exam by the SECs inspections division, according to people familiar with the 16-year-old firm. Fortune said Melchiorre wasnt a particularly good fit at the firm and irritated some senior executives. Despite the companys financial distress, its bonds traded near par until December, and after dropping, have been climbing back. 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. 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. Thats because they are losing to him.. 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. 5.Anthony Melchiorre, age 55, resides in Short Hills, New Jersey. Sue, Chatham lawyers warned, and well drag your family into this, according to court testimony. During that time, it invested relatively little, about $5.4 million, to try to improve the business. I would bet, in fact, that not one Star employee not even president-publisher-secretary and head of security Mike Fannin will ever see him. There, they tried to prevent him from pursuing a lawsuit accusing Chatham-backed iPayment and its board member Pecker of ousting him unfairly. Ive received well over six figures since retiring in 2006, and I could get another six, if I live long enough and if the PBGC either makes McClatchy pay up or picks up at least two-thirds of the companys pension responsibilities. 2023 BridgeTower Media. Then theres American Media. There, they tried to prevent him from pursuing a lawsuit accusing Chatham-backed iPayment and its board member Pecker of ousting him unfairly. Cohens involvement was detailed by people with knowledge of the talks. I love your lead sentence, Fitz. Long-term clients include the state pension fund of Chathams home state, New Jersey. It doesnt produce a product or render a significant service to society. Named after the leafy suburb where its based, Chatham has posted average annual returns of about 10%, trouncing many of its competitors. 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. A spokeswoman for Cohen declined to comment, and a spokesman for American Media and Pecker didnt respond to requests for comment. 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. 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. 685 Third Avenue Those investments amounted to a bet that the companies would acquire competitors and cut costs. I have no regrets whatsoever about going with the monthly pension. How fitting. Thats just not how bond math works, said Michael Terwilliger, a portfolio manager at Resource Credit Income Fund. 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. As a family-owned business headquartered in New Jersey, Trinity Solar is excited to interact with families and members of []. Tony Ridder came to the newsroom and spoke, although he was such a stone of a personality I dont specifically remember it. 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. The sale was proposed after American Media signed a nonprosecution agreement with federal prosecutors in which it affirmed that it had made a payment to influence the 2016 election. Cohens assignment: Get Carl Grimstad, the recently fired CEO of payments processor iPayment Holdings, to the table. Anthony Melchiorre, Chatham Asset Management, LLC: Profile and Biography - Bloomberg Markets Bloomberg Terminal Demo Request Bloomberg Connecting decision makers to a dynamic network of. 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. He built his stature as a temperamental money-maker at the white-shoe firm. Thats because they are losing to him.. Create Email Alert, ***Log In or 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.. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. In the same period, it spent nearly $127 million on debt payments. 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. for CHATHAM ASSET MANAGEMENT, LLC, Top 20 equal-weighted holdings. 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. On Friday he ordered remaining ones back to the office. 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. . I can almost guarantee you there will be staff cuts at most or all of those newspapers. Sign-up 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. . Chathams trading has drawn scrutiny before. Enter your email address to subscribe to this blog and receive notifications of new posts by email. As part of it, Postmedia traded 17 of its papers to Torstar in exchange for 24 Torstar papers. That made it one of the best performing bonds in the world at the time. Such wagers have come under increased scrutiny from regulators in the last 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. 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. 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. Gary Pruitt came to the newsroom. Seaport Global defended its practices. Subscribe for access to the latest digital and special editions. 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. But just on the outside chance he does come around, would somebody please take his picture and send it to me? This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. The average price per square meter is $528/sqft. /s/ Anthony Melchiorre Anthony Melchiorre Managing Member Contacts. 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. Finally, they agreed to prohibitions from serving in certain positions in the investment industry, pursuant to the Investment Company Act. 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. An SEC spokesman declined to comment. I remember that very well because by then I was hoping for a buyout and asked him, in front of the crowd, if he was planning on offering any. It has made money in an ailing business partly by cutting the number of reporters and editors at The Denver Post and other publications, moves that have angered journalists and press advocates who accuse the firm of diminishing local news coverage. 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. The new, supersize version of Gannett resulted from a merger last year between Gannett and the parent of GateHouse Media. 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. Thanks, Tracy. That made it one of the best performing bonds in the world at the time. The New Jersey office building in which Chatham Asset Management has its office. 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. Resources. 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. 1 Twitter 2 Facebook 3RSS 4YouTube 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. Donnelley to $10.85 Per Share in Cash. Long-term clients include the state pension fund of Chathams home state, New Jersey. Apr 3, 2023. , Bloomberg. Price swings on the trades described in the lawsuit marked the biggest-ever percentage changes in those securities, data reviewed by Bloomberg show. We'll assume you're ok with this, but you can opt-out if you wish. Anthony is Managing Member/Portfolio Manager and has served as Managing Member/Portfolio Manager since 09/01/2003. Chatham Asset Management is based out of Chatham. In all, the two companies closed 36 of the 41 newspapers that were part of the unusual deal, resulting in 291 job losses. Sad. 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. Those investments amounted to a bet that the companies would acquire competitors and cut costs. Chatham is not a newcomer to the news industry. 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. This website uses cookies to improve your experience while you navigate through the website. Whalewisdom has at least 9 13F filings, 19 13D filings, 29 13G filings, and 127 Form 4 filings Summary Holdings Ind. The firm and its founder, Anthony Melchiorre, have a reputation for hard-edged business. Choose your news we will deliver. Chatham said at the time that the allegations were baseless and without merit. The investigation remains active, according to an agency representative. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for Improper Fixed Income Securities Trading. Revenue has dropped an average of 10 percent a year since 2016. I wouldnt even begin to consider owning it at that level. 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 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. Within weeks, the notes were back at about par. . 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. 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. A similar story has unfolded at newspaper publisher McClatchy, which has posted annual losses since 2015. Chatham would conduct required due diligence and documentation and is prepared to devote considerable resources to completing this transaction, Melchiorre stated. Bob Hepburn, a Torstar spokesman, said, Torstar continues to cooperate with the bureau in its investigation.. It doesnt employ a lot of people, and I doubt if it sponsors arts organizations and gives to charities in Chatham. 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. 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. $5,850,800. Indications are hes been with Chatham more than 15 years. 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. As a subscriber, you have 10 gift articles to give each month. A year later, 3 grads CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. 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. 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[]. They also agreed to pay civil penalties of $4,400,000 and $600,000, respectively. A similar story has unfolded at newspaper publisher McClatchy, which has posted annual losses since 2015. Last week, that kind of financial maneuvering reappeared in another major newspaper deal, when Chatham emerged as the winning bidder in a bankruptcy auction for the McClatchy Company, a chain with 30 media outlets including The Miami Herald, The Kansas City Star and The Sacramento Bee. 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). 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. Last year, barely three months before Christie left office, his administrationsteeredanother $200 million to another Chatham vehicle. With McClatchy, the hedge fund also designed a trade aimed at reaping a windfall through credit-default swaps. 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. When Knight Ridder bought The Star and three other Disney-owned papers in 1997, Im pretty sure Knight Ridder C.E.O. Chatham and Melchiorre agreed jointly and severally to pay $11 million in disgorgement and around $3.4 million in prejudgment interest.
