McClatchy announced today that the auction held as a part
of its court-supervised sale process has concluded with Chatham Asset
Management the successful bid.
Under terms of the proposed agreement, which
will be finalized and filed with the U.S. Bankruptcy Court in the coming days,
McClatchy will “transition out of Chapter 11 as it entered it: in its totality,
as one company serving 30 communities across America,” said an announcement
from Sacramento-based McClatchy.
The proposed agreement positions McClatchy to
exit Chapter 11 protection in the third quarter of 2020, having achieved a
resolution and restructuring of the company's complex legacy debt and pension obligations,
McClatchy says. The company continues to expect that the Pension Benefit
Guaranty Corporation (PBGC) will assume McClatchy's qualified pension plan, The
McClatchy Company Retirement Plan. McClatchy is contributing an estimated $1.4
billion in pension assets to the PBGC.
The agreement will be subject to court
confirmation, currently scheduled for a hearing on July 24, as well as
customary regulatory approvals and other closing conditions.
New Jersey-based hedge fund Chatham
The auction was on Friday. Federal judge
Michael E. Wiles shot down a challenge by a second hedge fund, New York based Alden Capital Group, to Chatham
Among McClatchy’s papers are the Miami Herald,
Charlotte Observer, Kansas City Star, Fort Worth Star-Telegram and Sacramento
Bee.
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