Auction for McClatchy delayed while potential buyers finalize proposals, company says

The auction that will determine the fate of McClatchy, the nation’s second largest local news company, was delayed Wednesday to give potential buyers time to work through details of their bids, the company said.

Binding bids for McClatchy, which declared bankruptcy in February, were due last week, and the auction was originally scheduled to begin at 10 a.m. Eastern time Wednesday.

“McClatchy’s auction has been rescheduled for Thursday, July 9, in consultation with the relevant parties in order to enable the bidders to finalize the details of their proposals,” the Sacramento-based company said Wednesday in a statement that accompanied a court filing. “We are encouraged by the continued interest of multiple parties in our business.”

The company said the delay was not expected to affect the sale timeline.

McClatchy has not said how many binding bids were submitted. It’s known that the company’s largest creditor, the hedge fund Chatham Asset Management, initially offered more than $300 million in what is known as a credit bid, according to a court filing in April.

Court filings Wednesday indicated that Alden Capital Group, a Colorado-based hedge fund, is also among the bidders scheduled to take part in the auction.

The company said it expects to notify the federal bankruptcy court of the winning bid by July 15. The judge, Michael E. Wiles, is scheduled to approve the sale at a July 24 hearing.

If a bidder with other media holdings emerges as the buyer, a Justice Department review of monopoly concerns might follow before a sale is final.

McClatchy owns 30 media titles in 14 states and Washington, D.C., including the Miami Herald, the Kansas City Star, the Sacramento Bee, the Charlotte Observer, the (Raleigh) News & Observer and the Fort Worth Star-Telegram.