A media giant has fallen.
On May 15, VICE Media Group announced that it has filed for Chapter 11 bankruptcy, according to a press release.
The filing follows after the digital media and broadcasting company had a $5.7 billion valuation back in 2017, as previously reported by AfroTech.
The press release details that VICE’s lender consortium, including Fortress Investment Group, Soros Fund Management, and Monroe Capital, agreed to buy the company for $225 million.
What’s more, VICE shared that it “obtained commitments for debtor-in-possession (‘DIP’) financing from the Lender Consortium” and gained consent to use over $20 million of cash that accounts as cash collateral, which it aims to fund its business with through the sale.
The purchase is said to be official in two to three months.
“VICE serves a huge global audience with a unique brand of news, entertainment and lifestyle content,” VICE’s Co-CEOs Bruce Dixon and Hozefa Lokhandwala said in the press statement. “This accelerated court-supervised sale process will strengthen the Company and position VICE for long-term growth, thereby safeguarding the kind of authentic journalism and content creation that makes VICE such a trusted brand for young people and such a valued partner to brands, agencies and platforms.”
They continued, “We will have new ownership, a simplified capital structure, and the ability to operate without the legacy liabilities that have been burdening our business. We look forward to completing the sale process in the next two to three months and charting a healthy and successful next chapter at VICE.”
Vice states that all of its media brands such as VICE News, Refinery29, i-D, and more are set to still produce content despite the sale process.
Prior to filing for bankruptcy, CNBC reported VICE would likely fetch a price lower than $1 billion for its sale. Additionally, before restarting the sale, the company was seeking to make a deal within the $1-billion-to-$1.5-billion range.
