McClatchy Gets Court Nod for Bankruptcy Plan Over U.S. Objection

A New York bankruptcy judge indicated he’ll approve McClatchy Co.'s bankruptcy plan, finalizing the newspaper publisher’s restructuring and sale to hedge fund lender Chatham Asset Management.

Judge Michael Wiles of the U.S. Bankruptcy Court for the Southern District of New York overruled a government objection to McClatchy’s Chapter 11 plan during a telephonic hearing Wednesday. He’ll confirm the creditor repayment scheme after reviewing a final version, he said.

The plan stems from McClatchy’s sale to Chatham for $49 million in cash and the investment firm’s forgiveness of $263 million in secured debt claims. General unsecured creditors will receive about $5.6 ...