News & Observer

Draconian hedge fund makes move to purchase McClatchy

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Putting the Raleigh N&O and Char-O in a precarious position:

The refinancing of the company made Chatham — the principal owner of American Media Inc., the publisher of the National Enquirer supermarket tabloid — the largest debt holder in McClatchy.

Enter Alden Global Capital, a New York hedge fund that has become a major force in the newspaper business. In a surprise move on Wednesday, Alden filed an emergency motion in a U.S. Bankruptcy Court asking Judge Michael E. Wiles to stop Chatham from attempting to buy McClatchy through a credit bid, a transaction that would allow it to put the company debt it had assumed toward the purchase price.

Full disclosure: I don't know diddly about how bankruptcy courts operate, and I hope I never become learned on the subject. But I also believe in "learning from the mistakes of others," and Alden should be the last company allowed to control NC's flagship newspapers:

Dana copes with a hook in his mouth

Whether by phone, letter, e-mail or text, two of the most feared phrases in the state of North Carolina sometimes originate from 215 South McDowell Street and begin something like this... “It has come to our attention” or, “I’d like to ask you about.”

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