Struggling media company Vice Media Group said on Monday it had filed for Chapter 11 protection to facilitate its sale.
The company said in a court filing that it listed both assets and liabilities in the range of $500 million to $1 billion, according to the Reuters news service.
The statement also said that the group had agreed to the terms of an asset purchase agreement with a consortium of lenders. These include Fortress Investment Group, Soros Fund Management, and Monroe Capital.
The consortium agreed to provide total purchase consideration of approximately $225 million in the form of a credit bid for substantially all of the company’s assets, in addition to the assumption of significant liabilities upon closing, the statement said.
Monday’s announcement appeared to confirm many of the details of a proposed Chapter 11 scenario that emerged ten days ago.
Cash-strapped Vice Media has been searching for a buyer over the past year, to no avail. In February, Nancy Dubuc announced her exit as CEO after almost five years. The company subsequently appointed longtime execs Bruce Dixon and Hozefa Lokhandwala as co-CEOs.
Last month, Vice Media made layoffs in its news division and said it was pulling the plug on “Vice News Tonight,” its nightly show on Vice TV that had previously aired on HBO. In March, Jesse Angelo, Vice Media’s global president of news and entertainment, said he was exiting to form his own media and consulting outfit.
Vice Media Group’s five main business units are: Vice.com, the Vice Studios film and TV production unit; the Vice TV television network; Vice News; and creative agency Virtue. The company’s portfolio also includes Refinery29, the media and entertainment brand focused on women acquired in 2019; London-based Pulse Films; and i-D, a digital and print style publication covering fashion, culture and design.