Special to the Chronicle

After almost 130 years, The State newspaper will no longer be family owned.
Chatham Asset Management, a New Jersey hedge fund, won a bankruptcy court auction to buy the Columbia daily newspaper and others the McClatchy family owns.
Chatham is McClatchy's largest creditor. How much Chatham will pay has not been disclosed.

The State was 1st published February 18, 1891.
It was founded by brothers NG and AE Gonzales and remained in the hands of the family until 1986 when Knight Ridder bought it and 6 of its other newspapers.
When Knight-Ridder got into financial trouble, the California-based McClatchy family bought The State and other newspapers in 2006.
5 months ago, McClatchy, the 2nd largest local newspaper company, filed for Chapter 11 bankruptcy.

Under a proposed deal the bankruptcy court must approve, Chatham will buy the entire company, McClatchy said.
Chatham said in a statement that it is “committed to preserving newsroom jobs and independent journalism.”

US Judge Michael Wiles rejected a last-minute challenge by a 2nd hedge fund, Alden Capital Group, to Chatham’s bid.
Wiles is to confirm the winning bid at a hearing July 24.
The State has reportedly closed its Shop Road building in Columbia. Its newspaper is printed 6 days a week in North Carolina.
Due to debt and other problems, industry experts predict The State will go to digital publication only before the end of the year. 
.