American Media now owes debtholders in excess of $1 billion, more than the book value of its assets. State officials are well-positioned and duty-bound to investigate allegations of potential wrongdoing in hedge fund portfolios, said former Securities and Exchange Commission attorney Edward Siedle. As you are aware, Chatham Asset Management, LLC (together with its affiliates, "we" or "Chatham") is a New Jersey-based credit investment firm with extensive investments in the print media. The regulator declined to comment. Anthony Melchiorre has an ownership stake in Chatham Asset Management, LLC of between 50% and 75%. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. The order further finds that these trades were executed at prices Chatham and Melchiorre proposed and had the effect of increasing the price of the AMI bonds at a significantly higher rate than the prices of similar securities. 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. All rights reserved. They stay away from editorial matters but tend to focus on finding efficient ways to cut costs, according to two of the people. A Chicago-area kid who studied economics at Northwestern and got an MBA from the University of Chicago, his high-toned education didnt reduce the intensity of the former high-school football star. Behind the salacious headlines was an issue thats drawing scrutiny from regulators: bond prices. Anthony is Managing Member/Portfolio Manager and has served as Managing Member/Portfolio Manager since 09/01/2003. Alpes Maritimes is part of the Provence-Alpes-Cte d'Azur region. 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[]. It is mandatory to procure user consent prior to running these cookies on your website. Those investments amounted to a bet that the companies would acquire competitors and cut costs. Another McClatchy creditor, the New York hedge fund Brigade Capital Management, was named in a public filing as a partner of Chatham in the April bid. Washington, D.C.--(Newsfile Corp. - April 3, 2023) - The Securities and Exchange Commission today charged New Jersey-based Chatham Asset Management LLC and its founder, Anthony Melchiorre, in . The 2016 presidential campaign had just ended, and Michael Cohen was fresh off handling hush money for Donald Trump. STAY CONNECTED AMI represents a large portion of Chathams portfolio. 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. Chatham Asset Management Increases Offer to Acquire R.R. 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. At least one executivethe one Cohen and Pecker sparred withhas accused the New Jersey firm of market manipulation. 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. 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. /s/ Anthony Melchiorre Anthony Melchiorre Managing Member Contacts. Within weeks, the notes were back at about par. 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. In 2018, American Media announced the sale of the tabloid to the family that founded the Hudson News chain of newspaper and magazine shops. Chrome Extension. Fast Company & Inc 2023 Mansueto Ventures, LLC, State pension funds invested millions in hedge fund that controls National Enquirer parent. 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. Suite 3200 Traders have privately criticized what they see as lofty valuations of illiquid securities. We give you the access and tools to invest like a Wall Street money manager at a Main Street price. This much is sure: Chatham founder Melchiorre, 51, has a formidable reputation. Frank Casey will take over as head of the New Jersey Resources business, effective July 1. Postmedia (along with its external counsel) is strongly of the view that there has been no contravention of the Competition Act with respect to this matter, Phyllise Gelfand, a Postmedia spokeswoman, said in a statement. 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. Cohens involvement was detailed by people with knowledge of the talks. Austin Weinstein Hedge fund Chatham Asset Management and its founder, Anthony Melchiorre, agreed to pay more than $19 million to settle US allegations that the firm improperly traded. American Media acquired her story for $150,000 and never published it, a practice known as catch-and-kill. 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. SEC form, multiple filers or classes of filers, and much more.***. Fortress is owned by the Japanese conglomerate SoftBank. I love your lead sentence, Fitz. Fauci says the general public somehow didnt get his messaging that the vulnerable are really, really heavily On Thursday, Lyfts new CEO laid off over 1,000 employees. Anthony Melchiorre, Chatham Asset Management, LLC: Profile and Biography - Bloomberg Markets Bloomberg Terminal Demo Request Bloomberg Connecting decision makers to a dynamic network of. 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.. 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. What is the average price for a luxury home in Grasse, France? 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). JimmyCsays: At the juncture of journalism and daily life in KC, Theres clarity in the St. Louis Post-Dispatchs futureFor The Star, just a bighaze. 5.Anthony Melchiorre, age 55, resides in Short Hills, New Jersey. Chatham Asset Management and its founder, Anthony Melchiorre, have agreed to settle charges they violated U.S. laws designed to protect investors when they bought and sold bonds in. Their bonds, though, havent suffered. Aiysha Johnson will take the helm of the 13,000-plus member organization following Ralph Albert Thomas' June retirement. Anthony Ralph Melchiorre is an employee with Chatham Asset Management, LLC, a hedge fund company. Postmedia, where Pecker sat on the board until last August, has posted annual losses for most of the past decade. A Chicago-area kid who studied economics at Northwestern and got an MBA from the University of Chicago, his high-toned education didnt reduce the intensity of the former high-school football star. In 2013 and 2014, an Ohio pension system partially controlled by Gov. And as it happened, the hedge fund owned the tabloid, the National Enquirer, that he had just used to try and catch and kill stories about the future president. 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. A spokeswoman for Cohen declined to comment, and a spokesman for American Media and Pecker didnt respond to requests for comment. Apr 3, 2023. In an April 3 announcement, the Securities and Exchange Commission said that Chatham Asset Management LLC and founder Anthony Melchiorre agreed to pay more than $19.3 million in combined . This post has been updated with additional information from Calpers and the Ohio pension system. At least five other traders whove looked at the bonds say their prices seem too good to be true. No, I dont think hell be visiting the newsroom and talking about Chathams plans for the paper. 6LinkedIn 8 Email Updates. Fortune said Melchiorre wasnt a particularly good fit at the firm and irritated some senior executives. Choose your news we will deliver. As a subscriber, you have 10 gift articles to give each month. With roots going back to 1857, McClatchy, a consistent winner of top journalism awards, was one of the last major family-run news publishers. 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. 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. Products. Alt Turnover is calculated by taking either the total MV of new purchases or 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. The information you requested is not available at this time, please check back again soon. The guy who will be drawing the blood, Anthony Melchiorre, apparently is a piece of work. Something other than fundamentals are playing a huge factor in those bonds., In response to questions about the prices, Melchiorre sent a statement through a representative: We have tremendous conviction in our fundamental thesis on late stage media consolidation in North America and competitors are free to express opposing views.. Create Email Alert, ***Log In or Hedge Fund 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. Get our free e-alerts & breaking news notifications! Chathams media interests are led by two of its partners, Evan Ratner, a longtime Wall Street investor and a former analyst with Goldman Sachs, and Barry Schwartz, who has specialized in debt investments. 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. AMI executives helped Cohen purchase stories that could have hurt Trumps presidential bid, according to theWall Street Journal.