Chatham Asset Management, a New Jersey-based hedge fund, was the successful bidder for a court-sanctioned auction over the bankrupt newspaper chain McClatchy.
McClatchy, which owns major local newspapers including the Miami Herald the Charlotte Observer, said in a statement Sunday that Chatham Asset won the auction to buy the company.
“We’re pleased that Chatham and the supportive secured first-lien creditors believe in our business and our mission and are helping to achieve these goals. Local journalism has never been more vital and we remain steadfast in our commitment to delivering on our mission and continuing to serve our communities,” Craig Forman, president and CEO of McClatchy, said in a statement.
The company said the proposed agreement positions McClatchy to exit Chapter 11 protection in the third quarter of 2020. The agreement is subject to court confirmation and is scheduled for a hearing on July 23.
McClatchy announced in February that it had filed for Chapter 11 bankruptcy protection.
Chatham Asset Management is McClatchy Co’s largest creditor, according to McClatchy.
“As long-standing supportive investors in McClatchy, we are pleased with the outcome of the auction,” Chatham said in a statement to the newspaper. “Chatham is committed to preserving newsroom jobs and independent journalism that serve and inform local communities during this important time.”