McClatchy (NYSEMKT:MNI) has received a takeover offer from hedge funds Chatham Asset Management and Brigade Capital Management, which will forgive $263M of the company's senior debt in exchange for purchasing its publishing assets.
The transaction would end the McClatchy family's 163-year old control of the business, but would make sure it survives Chapter 11 bankruptcy at a time of plunging ad spending due to the coronavirus pandemic.
McClatchy owns the Miami Herald, Kansas City Star, Sacramento Bee and other daily newspapers.