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Vice said that the lender consortium, which includes Fortress
Investment Group, Soros Fund Management and Monroe Capital, will
provide about $225 million in the form of a credit bid for
substantially all of the company's assets and also assume
significant liabilities at closing.
Under a credit bid, creditors can swap their secured debt,
rather than pay cash, for the company's assets.
The company listed both assets and liabilities in the range of
$500 million to $1 billion, according to a court filing.
Vice said that it received commitments for debtor-in-possession
financing from the lenders, as well as consent to use more than
$20 million in cash, which it said will be "more than
sufficient" to fund its business throughout the sale process.
The bankruptcy filing comes amid a challenging period for
several technology and media companies, as they resort to
downsizing in recent months due to a turbulent economy and weak
advertising market.
Vice was among a group of fast-rising digital media ventures
that once commanded rich valuations as they courted millennial
audiences. It rose to prominence alongside its co-founder, Shane
Smith, who built his media empire from a single Canadian
magazine.
In April, the company said it would cancel popular TV program
"Vice News Tonight" as part of a broader restructuring that
would result in job cuts across the digital media firm's global
news business.
Last month, BuzzFeed Inc said it would shutter its news
division, which was renowned for its irreverent and probing
coverage, but ultimately succumbed to the challenges of its
digital-first business model.
(Reporting by Rahat Sandhu and Samrhitha Arunasalam in Bengaluru;
editing by Uttaresh Venkateshwaran)
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