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. 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. Anthony Melchiorre is the Founder & Managing Member of Chatham Asset Management. 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. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. Sign up for your daily digest of New Jersey News. If they dont do a good job serving their community, the profits wont follow.. Well, this company, Chatham Asset Management, doesnt do a lot that would make it want to call attention to itself. 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. [2]: No, I dont think hell be visiting the newsroom and talking about Chathams plans for the paper. 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. , Bloomberg. If asked to vote, I can assure you I will be voting for us to divest, he said. 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. As a family-owned business headquartered in New Jersey, Trinity Solar is excited to interact with families and members of []. While he was wrangling with Chatham, news trucks were parked outside his house for days. Chatham has never had any relationship with, spoken to or compensated Michael Cohen, a representative for the firm said in response to queries from Bloomberg. The number of journalists at its Vancouver papers the Vancouver Sun and The Province has been cut in half, according to Mr. Gibson. Soon after, he crossed the Hudson River to set up his own hedge fund in Chatham, N.J. Mr. Melchiorre manages over $4 billion in assets for clients through various funds, including some listed under a Cayman Islands address, where more favorable tax rates apply. 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. 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. 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. SEC form, multiple filers or classes of filers, and much more.***. Grimstad knows what its like to be under a tabloid-like glare. Enjoy your pension, which is fleeting. 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. The regulator declined to comment. Thats just not how bond math works, said Michael Terwilliger, a portfolio manager at Resource Credit Income Fund. 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. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. Start Free Trial . Fortress is owned by the Japanese conglomerate SoftBank. 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. Best known for its luridEnquirerheadlines (Aliens Are Living in My Toilet), AMI has been beset by a difficult environment for print publications. How do I update this listing? 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. And in 2006, when McClatchy bought out Knight Ridder, McClatchy C.E.O. Even before the pandemic, Postmedia saw a falloff in advertising, once the lifeblood of newspapers. As a result, during the relevant period, the NAVs of Chathams clients were higher than they would have been if the subject trades were removed from the market for the AMI bonds, which, in turn, resulted in higher fees being charged to the clients. Powered and implemented by Interactive Data Managed Solutions. For the low-profile Chatham, American Media has become a high-profile headache. Melchiorre and his wife have donated more than $100,000 to Republican candidates and party committees since 2010. Its no wonder Chathams side would enlist Cohen, long known for his doggedness on behalf of Trump. 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. 2023 BridgeTower Media. I can almost guarantee you there will be staff cuts at most or all of those newspapers. Hedge Fund Chatham Settles SEC Case on Improper Bond Trading (1) 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. Products. Like most newspaper companies, including McClatchy, which struggled for more than a decade before filing for Chapter 11 bankruptcy protection in February, Postmedia has suffered falling revenues, making cost cuts all but inevitable. Chatham would conduct required due diligence and documentation and is prepared to devote considerable resources to completing this transaction, Melchiorre stated. After stints at Donaldson, Lufkin & Jenrette, and Goldman Sachs Group, Melchiorre landed at Morgan Stanley in 1998 where he rose to head the junk-bond trading group. 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. 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. email address below and choose 'Submit'. 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. As a subscriber, you have 10 gift articles to give each month. They wanted to kill a lawsuit by the former head of another Chatham company. Anthony Melchiorre has an ownership stake in Chatham Asset Management, LLC of between 50% and 75%. [1]: Newsonomics: Six takeaways from McClatchy's bankruptcy 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. Indications are hes been with Chatham more than 15 years. Chathams tabloid publisher possesses a treasure trove of Trumps secrets, his former fixer Cohen told Congress last month. Chatham's and Mr. Melchiorre's trading in the AMI bonds accounted for the vast majority of trading in those securities and therefore over time had a material effect on their pricing, according to the SEC. Chatham and the Enquirer 's publisher, David Pecker, had turned to. Luxury Homes for Sale in Cabris, Provence Alpes Cte D'azur, France That money was part of a deal the company had struck with Karen McDougal, a Playboy model who said she had an affair with Donald J. Trump. Grimstad claimed in filings that Chatham had manipulated iPayment bonds to seize control of the company. AMI executives helped Cohen purchase stories that could have hurt Trumps presidential bid, according to theWall Street Journal. In the fall, Alden took a 32 percent stake in Tribune Publishing, the owner of The Chicago Tribune and several other major papers. Chatham has been restructuring their debt to give them more time. Alpes-Maritimes, France Genealogy FamilySearch All Rights Reserved. Sue, Chatham lawyers warned, and well drag your family into this, according to court testimony. It even offered lower yields than some blue-chip companies. Despite the companys financial distress, its bonds traded near par until December, and after dropping, have been climbing back. Thoserecordsshow the original $500 million investments are now worth as much as $692 million. A similar story has unfolded at newspaper publisher McClatchy, which has posted annual losses since 2015. That kind of showing helped the firm attract $300 million from investors this quarter, a person familiar with the matter said. 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. Get our free e-alerts & breaking news notifications! American Media acquired her story for $150,000 and never published it, a practice known as catch-and-kill. 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. With roots going back to 1857, McClatchy, a consistent winner of top journalism awards, was one of the last major family-run news publishers. These cookies will be stored in your browser only with your consent. There are people who dont like him. Washington D.C., April 3, 2023 The Securities and Exchange Commission today charged New Jersey-based Chatham Asset Management LLC and its founder, Anthony Melchiorre, in connection with improper trading of certain fixed income securities. Traders have privately criticized what they see as lofty valuations of illiquid securities. (Bloomberg) -- The threat was blunt: Back off, or there will be trouble. The SEC has increased its focus on the valuation of securities across the market, said Jacob Frenkel, a lawyer at Dickinson Wright. Its no wonder Chathams side would enlist Cohen, long known for his doggedness on behalf of Trump. Hedge funds and private equity companies have become a force in the news industry. Yet its junior bonds offer yields comparable to more senior securities. The examination that led to the investigation was conducted by members of the Division of Examinations' Private Funds Unit, including Jennifer Duggins, Christopher Marino, and Michael Collins. 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. This story was co-published with MapLight and Capital & Main. 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. Chatham is a hedge fund, and, like most hedge funds, it is interested in just one thing: Big bucks. From 2004 to 2019, roughly half of all newspaper jobs in the United States were eliminated, according to a University of North Carolina study. 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). Its bonds rarely change hands. When completed, an email will be sent to the email address you specify Chatham Asset Management, founder Anthony Melchiorre hit with SEC The companys main office is on the second floor of a nondescript, two-story office building in Chatham, NJ, 28 miles west of the Manhattan skyscrapers. Under Hedge Fund Set to Own McClatchy, Canadian Newspapers Endured Big Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors. Chatham had the winning bid for the McClatchy Company, the family-run publisher of The Sacramento Bee and other papers. Chatham investment firm moves to acquire Vericast for $2.85B. Chatham said at the time that the allegations were baseless and without merit. 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. Within weeks, the notes were back at about par. 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. Chatham and the Enquirers publisher, David Pecker, had turned to Trumps fixer as a mediator. Thats exactly what happened. 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. Contact. All text and design is copyright 2020 WhaleWisdom.com. Chatham and Melchiorre agreed to pay . 5.Anthony Melchiorre, age 55, resides in Short Hills, New Jersey. 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. 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. A New Jersey Treasury Department spokesperson said in an email that its Division of Investment is in regular contact with its investment partners regarding underlying portfolio companies and provides feedback when appropriate. Advisor Info 13D/G Insider (Form 4) Ownership/Private Fund Data And given the strains in the print-media business, the strong price of the debt is difficult to explain, traders say. What is the average price for a luxury home in Grasse, France? Anthony Ralph Melchiorre - Chatham Asset Management, LLC Federal regulators have been asking questions, too. The guy who will be drawing the blood, Anthony Melchiorre, apparently is a piece of work. What a great word! Offers may be subject to change without notice. Vericast recently announced several growth initiatives, including investing in technology and hiring for more than 250 new positions across the organizationits largest investments in innovation and employees since the companys 2020 launch. 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.
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