Global Courant 2023-05-15 15:34:06
Vice Media Group, popular for websites like Vice and Motherboard, filed for bankruptcy protection on Monday to secure the sale to a group of backers, ending years of financial trouble and the departure of top executives.
Vice said the lender consortium, which includes Fortress Investment Group, Soros Fund Management and Monroe Capital, will provide approximately $225 million US in the form of a credit offer for virtually all of the company’s assets and will also assume significant liabilities at closing.
Under a credit offer, creditors can redeem their secured debt instead of paying cash for the company’s assets.
The company listed both assets and liabilities between $500 million and $1 billion, according to a court filing.
Vice said it has received commitments from the lenders for debtor property financing, as well as permission to use more than $20 million in cash, which it says will be “more than enough” to fund its company during the sale process.
Recent layoffs
The bankruptcy filing comes amid a challenging period for several technology and media companies as they have resorted to downsizing in recent months due to a turbulent economy and a weak advertising market.
Headquartered in New York City, Vice was among a group of high-growth digital media companies that once earned high valuations as they courted millennial audiences. It rose to prominence alongside co-founder, Shane Smith, who built his media empire from a single Canadian magazine in Montreal.
In April, the company said it would cancel hit TV show Vice News Tonight as part of a broader restructuring that would lead to job cuts at the digital media company’s global news business.
Last month, BuzzFeed Inc said it would close its news division, known for its irreverent and intrusive reporting, but ultimately succumbed to the challenges of its digital-first business model.
