Vice Media Group, the digital media company, has filed for Chapter 11 bankruptcy after reaching an asset purchase agreement with a group of lenders. The lenders, which include Fortress Investment Group, Soros Fund Management, and Monroe Capital, have agreed to provide $225 million as a credit bid for “substantially all of the company’s assets,” according to a statement released by Vice.
As part of the agreement, the lenders have already contributed $20 million in cash to support Vice’s operations during the sale process, which is expected to last two to three months. If Vice does not find a higher bidder, the group of lenders will become the majority owners of the company.
Vice filed for bankruptcy in the Southern District of New York, stating estimated assets between $500 million to $1 billion, along with estimated liabilities. The filing indicates Vice has more than 5,000 creditors.
The Co-Chief Executive Officers of Vice, Bruce Dixon and Hozefa Lokhandwala, expressed their optimism about the bankruptcy process, emphasizing that it will strengthen the company and position it for long-term growth. They reassured that Vice’s various media brands, such as Vice News, Vice TV, and Refinery29, will continue to operate and produce content.
The filing and asset purchase agreement will allow Vice to have new ownership, a simplified capital structure, and the ability to operate without the burden of legacy liabilities. It is important to note that Vice’s international entities and its joint venture with A&E for Vice TV are not included in the Chapter 11 filing, ensuring their operations remain unaffected.
Despite the bankruptcy filing, Vice remains committed to delivering authentic journalism and content creation, aiming to maintain its reputation as a trusted brand for young people and a valued partner for brands, agencies, and platforms.
