TRENTON — Hedge fund Chatham Asset Management’s bid succeeded in a court-supervised auction for bankrupt news publisher McClatchy Company, the news company said today.
The Miami Herald publisher said Chatham’s proposed deal, which needs a court confirmation and other regulatory approvals, would help it exit Chapter 11 protection in the third quarter.
McClatchy had filed for Chapter 11 bankruptcy protection in February, burdened by heavy debt it took on when it bought newspaper chain Knight Ridder in 2006 and large pension obligations that eat into its profits.
It began soliciting proposals for the company in April and received offers from New Jersey-based Chatham and Brigade Capital Management, each a holder of the company’s debt.
The Sacramento, California-based publisher said it would contribute about $1.4 billion in pension assets to the Pension Benefit Guaranty Corporation fund and expects it to assume the company’s qualified pension plan.
—REUTERS
Reporting by Ismail Shakil in Bengaluru; Editing by Aurora Ellis
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