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Doesn't really come as a shock to me and I’m guessing to most others as well. Looks like they want to shed themselves of their pension obligations and null all the company stock. A hedge fund will own/control what’s left. I guess the family that owns McClatchy is associated with the fund.
Chatham Asset Management a/k/a the Jersey boys is a multi-billion dollar fund with many investments. They held some of McClatchy's bonds, and since McClatchy couldn't make interest payments on the bonds, Chatham will take ownership of the company. Whether Chatham continues to operate it for long or sells it as soon as they can fix it up, we will have to wait and see. I don't believe there is any relationship between the McClatchy family and Chatham. If anything, the McClatchy family had postponed bankruptcy again and again because they knew it would wipe out their stake in the company.
If a company with a qualifying pension plan goes bankrupt, PBGC takes over its pension assets and obligations. Nothing new or unusual about that. Businesses that are struggling to survive often under-contribute to their pension assets during their last years. PBGC will file a claim against the McClatchy estate in bankruptcy court, unless Chatham has already figured out how to avoid that. But you can't squeeze blood from a turnip, as my grandmother would say.
Last edited by wizard-xyzzy; 02-13-2020 at 01:24 PM..
Doesn't really come as a shock to me and I’m guessing to most others as well.
Not unexpected, but still sad to see. I enjoyed reading (or ranting at while I read!) the various columnists the N&O had over the years. They used to do a nice thing around Christmas, with a full page spread of photos, congratulating their latest 25-year employees, as well as others that made that milestone in years past. I know several of them had 40+ years. Times change, so I guess I will try to enjoy the morning paper with coffee as long as it lasts.
They used to do a nice thing around Christmas, with a full page spread of photos, congratulating their latest 25-year employees, as well as others that made that milestone in years past. I know several of them had 40+ years.
I always enjoyed that edition. I knew a lot of those guys. I drank a lot of early morning coffee reading that paper too. We still subscribe to the online paper, and we’ll be sad to see it end.
Today's N&O confirms that PBGC and Chatham are already tussling at the bankruptcy court. The vested N&O employees will get their pensions either way, but PBGC extracts as much as they can from the bankruptcy estate to minimize the drawdown on their reserves.
Today's N&O confirms that PBGC and Chatham are already tussling at the bankruptcy court. The vested N&O employees will get their pensions either way, but PBGC extracts as much as they can from the bankruptcy estate to minimize the drawdown on their reserves.
Moving Chatham debt from unsecured to secured and about doubling the amount, when McClatchy already appeared to be insolvent?
Fuel for the fire.
Journalism will have a new higher bar for investigation!
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