(Reuters) -Vice Media Group, fashionable for web sites equivalent to Vice and Motherboard, filed for chapter safety on Monday to engineer its sale to a bunch of lenders, capping years of monetary difficulties and top-executive departures.
Vice stated that the lender consortium, which incorporates Fortress Funding Group, Soros Fund Administration and Monroe Capital (NASDAQ:), will present about $225 million within the type of a credit score bid for considerably the entire firm’s property and in addition assume important liabilities at closing.
Below a credit score bid, collectors can swap their secured debt, slightly than pay money, for the corporate’s property.
The corporate listed each property and liabilities within the vary of $500 million to $1 billion, in response to a court docket submitting.
Vice stated that it acquired commitments for debtor-in-possession financing from the lenders, in addition to consent to make use of greater than $20 million in money, which it stated can be “greater than enough” to fund its enterprise all through the sale course of.
The chapter submitting comes amid a difficult interval for a number of know-how and media firms, as they resort to downsizing in latest months resulting from a turbulent economic system and weak promoting market.
Vice was amongst a bunch of fast-rising digital media ventures that when commanded wealthy valuations as they courted millennial audiences. It rose to prominence alongside its co-founder, Shane Smith, who constructed his media empire from a single Canadian journal.
In April, the corporate stated it could cancel fashionable TV program “Vice Information Tonight” as a part of a broader restructuring that will lead to job cuts throughout the digital media agency’s international information enterprise.
Final month, BuzzFeed Inc stated it could shutter its information division, which was famend for its irreverent and probing protection, however in the end succumbed to the challenges of its digital-first enterprise mannequin.