NEW YORK _ Bankruptcy proceedings for McClatchy Co. started Friday with a key government agency saying it opposed quick resolution of pension matters because of concerns about a 2018 transaction between the local news company and its largest creditor, Chatham Asset Management.
Ahead of the opening bankruptcy petition hearing, the Pension Benefit Guaranty Corporation filed a limited objection to McClatchy's request to obtain $50 million in new financing to ensure it can continue to operate while in bankruptcy.
The PBGC, which takes over pensions in the event of company distress, did not object to McClatchy's continued use of the new financing. But the agency asked the court to investigate a complex 2018 transaction between McClatchy and Chatham, a hedge fund, before it begins evaluating McClatchy's reorganization plan.
