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Questions From Pension Agency Might Slow Down McClatchy's Bankruptcy Process

mcclatchy_bankruptcy_court.jpg
KEVIN G. HALL
/
McClatchy
The Chapter 11 case by McClatchy is being heard in U.S. Bankruptcy Court for the Southern District of New York.

Bankruptcy proceedings for McClatchy Co. began Friday with a key government agency saying it opposed quick resolution of pension matters because of concerns about a 2018 transaction between the company and its largest creditor, Chatham Asset Management.

The Pension Benefit Guaranty Corporation, which takes over pensions in the event of company distress, argued against a request by McClatchy and Chatham to move immediately to mediation. The judge delayed a decision on the mediation request until Tuesday.

“We are not close,” Kimberly E. Neureiter, an attorney for the PBGC, told Judge Michael E. Miles.

Read more at our news partner the Miami Herald.