NEW YORK — Hedge fund Chatham Asset Management said it plans to buy McClatchy, publisher of the Miami Herald and operator of 30 media companies in 14 states.
The hedge fund did not put a price on the deal. The agreement still needs the approval of a bankruptcy judge.
McClatchy has been under family control for 163 years and is one of the largest newspaper companies in the United States. Among its operations are The Charlotte Observer, The News & Observer in Raleigh, The Kansas City Star, Fort Worth Star-Telegram and The Sacramento Bee.
McClatchy filed for bankruptcy protection because of a heavy debt load stemming from its $4.5 billion purchase of the Knight-Ridder newspaper chain in 2006, just as the newspaper industry went into steep decline.
Chatham was McClatchy's largest shareholder and debt holder. It beat out a bid from Alden Global Capital, another hedge fund that has taken a leading role in the U.S. newspaper business.
McClatchy will transition out of Chapter 11 as a single company, according to a letter to its investors.