Digital media and broadcasting firm Vice Media has filed for bankruptcy in the US in a culmination of several years-worth of complicated financials and high-level departures.
The chapter 11 filing comes as Vice looks to facilitate its sale to a consortium of lenders including Fortress Investment Group, Soros Fund Management and Monroe Capital for US$225m.
For a company that was once valued at US$5.7bn, this is a stark indicator of its reversal in fortunes in recent years, having struggled to adapt to the visceral competition of online publishing.
Vice’s bankruptcy declaration will now enable it delay its obligations to creditors, and allow its lenders to approve US$20m-worth of funding to keep the business afloat throughout the process.
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During this time, other businesses may submit ‘higher or better’ bids for Vice Media. If these are not successful, the media outfit will be sold to lenders for US$225m.
The company has confirmed that it will remain operation for the duration of the bankruptcy process, and that it expected “to emerge as a financially healthy and stronger company in two to three months”.
Co-chief executives, Bruce Dixon and Hozefa Lokhandala added: “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.”
