1. Welcome to SportsJournalists.com, a friendly forum for discussing all things sports and journalism.

    Your voice is missing! You will need to register for a free account to get access to the following site features:
    • Reply to discussions and create your own threads.
    • Access to private conversations with other members.
    • Fewer ads.

    We hope to see you as a part of our community soon!

McClatchy to Declare Bankruptcy?

Discussion in 'Journalism topics only' started by LanceyHoward, Nov 14, 2019.

  1. Raven

    Raven Well-Known Member

    What a loss lmao
     
  2. Twirling Time

    Twirling Time Well-Known Member

    As I said before, GannettHouse will have its hands full for a while whacking mid-management. The ax drops for the hoi polloi after Christmas most likely.
     
  3. Fredrick

    Fredrick Well-Known Member

    Is GannettHouse going to cut people at their production center(s)? All the new newspapers to lay out? Is McCutcheon? Or are these groups adding. Tell us more about mid management people getting whacked at GannettHouse? Are the excess editors who don't produce copy getting fired?
     
  4. BTExpress

    BTExpress Well-Known Member

    McCutcheon is doing fine from all I can gather. Not so the other All-Pro running back from 45 years ago.

    [​IMG]
     
    Liut likes this.
  5. Raven

    Raven Well-Known Member

    Wrong thread, homie.
     
  6. BTExpress

    BTExpress Well-Known Member

    Right thread.

    See above, homie.
     
  7. Craig Sagers Tailor

    Craig Sagers Tailor Active Member

  8. BTExpress

    BTExpress Well-Known Member

    The e-mails started at 5:30 this morning. "We will continue to operate as usual. Your work has never been more important!"

    [​IMG]
     
    Fredrick likes this.
  9. The Big Ragu

    The Big Ragu Moderator Staff Member

    If this bankruptcy goes through, Chatham Asset Management will become the owner of McClatchy.

    As an outsider looking in, this is a complicated story. I posted this months ago. ...

    Chatham loaded up on McClatchy debt and equity over a long period of time, which may suggest they believed in the company's viability and were investing and loaning money because they thought the company could be turned around.

    But then they engaged in a financial transaction that was sleazy in a way I have never actually seen before. I was not sure how it was even legal. About 2 years ago, speculators had piled up about a half billion dollars on credit default swaps. ... betting McClatchy was going to default on its debt (and look at where we are now). Chatham was selling those swaps. If there was no default, they'd collect the premium, sort of like selling an insurance policy that never has a claim. If the company did default, Chatham would have lost a lot of money.

    When McClatchy started to buckle, and it looked like a default was coming, Chatham (a major debt holder) struck a deal with the company to refinance its debt, trimming interest and extending the term of the bonds. The catch was that they structured it in a way that orphaned the CDS contracts Chatham was on the hook for. ... creating a new holding company and moving the debt to the new entity. It left everyone who had been betting on a default, holding swaps against an empty company that no longer had any debt. The debt had just been shifted on paper to something with a different name. I don't know HOW you can do something like that, but they did and seemingly got away with it.

    What makes this complicated is that aside from that bit of financial chicanery, which should make anyone suspicious of Chatham and how it operates ... you need to remember that Chatham had also had lent a ton of money to McClatchy and had loaded up on stock in the company. They may have been actually selling those swaps because they believed in the company so much and believed it wouldn't default. Their involvment buying debt and equity demonstrates that they probably thought the business was a good investment opportunity.

    Now if this bankruptcy goes through, they are going to be the owner. If I was an employee facing all of the uncertainty right now, I think I'd rather have someone like that as the new owner than someone you know is an activist investor looking to maximize the value of what they own in any way possible including having a fire sale. It could be the best relative outcome in a bad situation.
     
  10. BTExpress

    BTExpress Well-Known Member

    Most in my circle believe they're going to shut print down after the election (and Black Friday).
     
  11. Raven

    Raven Well-Known Member

    And what will happen to Forman, who continues to rake in millions in compensation and tens of thousands in "housing?"
     
  12. FileNotFound

    FileNotFound Well-Known Member

    This is super-interesting. Anything specific that leads you to believe this, or just informed speculation?
     
Draft saved Draft deleted

Share This Page