- Fortress Investment, Soros Fund Management, and Monroe Capital are members of the lending consortium.
- The majority of Vice Media’s assets, along with sizable liabilities, will be acquired by the firm for $225 million in the form of a credit offer, according to the company’s Monday announcement.
- Vice submitted voluntary petitions for Chapter 11 reorganisation to the Southern District of New York bankruptcy court.
After years of financial difficulties, Vice Media Group, once a digital media darling, filed for bankruptcy protection on Monday.
Following the filing, a group of Vice’s lenders, including Fortress Investment, Soros Fund Management, and Monroe Capital, plans to buy the business.
The pioneer in digital media, once valued at $5.7 billion and recognised for sites like Vice and Motherboard, had been restructuring and laying off staff in recent months throughout its global news division.
Vice Media said on Monday that the group preparing to acquire the business will provide $225 million in the form of a credit bid for the majority of Vice Media’s assets as well as significant liabilities.
One of several digital media and technology companies having to restructure this year as a result of a weak advertising market and a stagnant economy is Vice. Buzzfeed announced significant layoffs and the closure of its news division last month.
Vice, a fringe magazine that debuted in Canada in 1994, grew internationally thanks to its youth-oriented content and strong social media presence. However, it struggled financially for several years as tech behemoths like Google and Meta absorbed all international advertising spending.
Vice filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York in order to facilitate its sale. Other parties will be permitted to submit bids for the company if the application is accepted. Creditors can exchange secured debt for corporate assets through credit bids rather than making a cash payment.
The consortium has pledged $20 million in cash as part of its bid in order to keep Vice’s operations going throughout the selling process. The corporation stated that it should be finished in two to three months.
Vice claimed that while its international entities and Vice TV’s joint venture with A&E are not included in the Chapter 11 filing, its many multi-platform media brands, including Vice News, Vice TV, Pulse Films, Virtue, Refinery29, and i-D, will continue to function.
According to a statement released by Vice Co-CEOs Bruce Dixon and Hozefa Lokhandwala, the selling process would “strengthen the Company and position VICE for long-term growth.”
“We will have new ownership, a simplified capital structure, and the ability to operate without the legacy liabilities that have been burdening our business,” they continued.