A consortium of Vice’s lenders which includes Fortress Investment, Soros Fund Management and Monroe Capital is looking to acquire the company following the filing.
The digital media trailblazer, once valued at $5.7 billion and known for sites including Vice and Motherboard, had been restructuring and cutting jobs across its global news business over recent months.
The group set to buy the company will provide $225 million in the form of a credit bid for most of Vice Media’s assets, the company announced on Monday, along with significant liabilities.
Vice is one of several digital media and technology firms forced to restructure this year amid a sluggish economy and weak advertising market. Buzzfeed last month shuttered its news division and announced substantial layoffs.
Launched in Canada in 1994 as a fringe magazine, Vice expanded around the world with youth-focused content and a prominent social media presence.
To facilitate its sale, Vice filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York. If the application is approved, other parties will be able to bid for the company. Credit bids enable creditors to swap secured debt for company assets rather than pay cash.
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