That may worry McClatchy journalists, who are wondering how Chatham would run the business at a time when Google and Facebook dominate the online ad market and fewer readers are willing to pay for news, challenges that have been worsened by the coronavirus pandemic. There are 8 other people named Anthony Melchiorre on AllPeople. 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. The guy who will be drawing the blood, Anthony Melchiorre, apparently is a piece of work. 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. It declined to comment further. 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. Seaport Global defended its practices. National Enquirer owner during Trump payoffs charged with bond price Chatham itself has been undergoing its first ever exam by the SECs inspections division, according to people familiar with the 16-year-old firm. 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 deal was partly financed by one private equity fund, Apollo Global Management, and Gannett is now controlled by another private equity fund, Fortress Investment Group, which is owned by the Japanese conglomerate SoftBank. In all three cases, Chatham bought most of the subordinated bonds, plus stock. 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. The SEC has increased its focus on the valuation of securities across the market, said Jacob Frenkel, a lawyer at Dickinson Wright. 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. 2023 Fortune Media IP Limited. Suite 3200 What asset class is best for corporate plans' growth investments when using LDI? Performance At Hedge Fund That Owns Trump Secrets, Clashes and Odd Bond Math 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. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. These cookies do not store any personal information. 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. 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. Chatham Asset Management Increases Offer to Acquire R.R. Donnelley to Performance numbers calculated through 2022-05-16. . 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. 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 led by Anthony Melchiorre, a Chicago-area native who has earned a reputation on Wall Street as a tough negotiator. /s/ Anthony Melchiorre Anthony Melchiorre Managing Member Contacts. With roots going back to 1857, McClatchy, a consistent winner of top journalism awards, was one of the last major family-run news publishers. 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. 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. SEC Charges Chatham Asset Management and Founder Anthony Melchiorre for The hedge fund owns about two-thirds of the companys long-term debt. As a subscriber, you have 10 gift articles to give each month. The SEC has increased its focus on the valuation of securities across the market, said Jacob Frenkel, a lawyer at Dickinson Wright. Postmedia and Torstar concluded the deal with no cash changing hands. Those investments amounted to a bet that the companies would acquire competitors and cut costs. Chatham, an investor in the company since 2009, is its largest creditor. By Sabela Ojea. 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. 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. All Rights Reserved. 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 . 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. Luxury Homes for Sale in Grasse, Provence Alpes Cte D'azur, France Cohens assignment: Get Carl Grimstad, the recently fired CEO of payments processor iPayment Holdings, to the table. The merger took place in November 2017, about a year after Chatham took majority ownership. A bankruptcy court hearing on the matter is scheduled for July 24. Last year, barely three months before Christie left office, his administrationsteeredanother $200 million to another Chatham vehicle. $5,850,800. Blue Sky Digital Outdoor Advertising Fund Fund Data, Sarasin Ie Global Equity Opportunities (Usd) Fund Data, Themelios Ventures Ii-A, L.P. Fund Data. Fortress is owned by the Japanese conglomerate SoftBank. The firm and its founder, Anthony Melchiorre, have a reputation for hard-edged business. 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. 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. Hedge Fund Chatham, Founder Melchiorre Pay $19M in SEC Case Over Bond A similar story has unfolded at newspaper publisher McClatchy, which has posted annual losses since 2015. Chatham Asset Management to Pay $19.3M to Settle SEC Charges to see more advanced email alert options such as selecting any type of 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. 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. Alden controls roughly 200 outlets through its newspaper chain, MediaNews Group. In all three cases, Chatham bought most of the subordinated bonds, plus stock. Its bonds rarely change hands. Yet, over the years questions have swirled around Chatham. Melchiorre and his wife have donated more than $100,000 to Republican candidates and party committees since 2010. 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. 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. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. Frank Casey will take over as head of the New Jersey Resources business, effective July 1. Best known for its luridEnquirerheadlines (Aliens Are Living in My Toilet), AMI has been beset by a difficult environment for print publications. Chris Christies administrationmoved$300 millionof pension cash into the Chatham Fund, LP, which hasowneda stake in AMI, according to SEC records. 5.Anthony Melchiorre, age 55, resides in Short Hills, New Jersey. 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. of the acquiring company to visit the newsrooms of the papers being bought and to speak about the companys plans for the future and answer employees questions. What a perfect synecdoche. 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. 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. 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. As a family-owned business headquartered in New Jersey, Trinity Solar is excited to interact with families and members of []. (One of the people whom Chatham installed on the Postmedia board was Daniel Rotstein, a consultant for American Media.). They make money for their clients.. From 2004 to 2019, roughly half of all newspaper jobs in the United States were eliminated, according to a University of North Carolina study. 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. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. Yet its junior bonds offer yields comparable to more senior securities. In a statement, a Chatham spokesman said the company was pleased with the outcome of the auction, adding, Chatham is committed to preserving newsroom jobs and independent journalism that serve and inform local communities during this important time.. That deal still has not closed. Yet its junior bonds offer yields comparable to more senior securities. 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. Were not even covering some City Hall things, which we miss., Postmedia said in a statement that it did not share specific numbers on staffing. The information you requested is not available at this time, please check back again soon. The deal happened so quietly that Postmedias own financial news site described it as a debt restructuring in a report that included a single mention of Chatham as one of the investors.. While DOI plays no role in the management of a funds portfolio companies, it expects the funds to invest in good businesses with strong management teams that follow all applicable laws.. Homes for sale in Grasse, France have an average listing price of $1,650,490 and range in price between $498,470 and $19,828,038. "As a result, during the relevant period, the NAVs of Chatham's 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," the SEC said.