McClatchy Bankruptcy Begins With Call to Probe Hedge Fund Deals

A plan to have Chatham Asset Management take ownership of bankrupt McClatchy Co. swiftly ran into obstacles as a government agency raised concerns that the newspaper chain’s dealings with the hedge fund disadvantaged its pensioners.

The courtroom fight, part of bankruptcy proceedings that McClatchy kicked off last week, traces back to a seriesof debt deals Chatham arranged in 2018. They were seen by some in the market as a clever play -- if they can withstand legal scrutiny.

Chatham owned the vast majority of McClatchy’s unsecured bonds in 2018 when it helped provide a new loan for the newspaper ...