Vice Media Group officially filed for Chapter 11 bankruptcy protection on Monday as the digital media publisher as it prepares to be sold to a group of its debtors led by Fortress Investment Group and Soros Fund Management, marking a dramatic collapse for a company that was valued by investors at $5.7 billion just six years ago.
Vice media filed for chapter 11 bankruptcy protection on Monday.
In its Chapter 11 filing made with the Southern District of New York (SDNY) federal court, Vice Media pegged the value of both its assets and liabilities between $500 million and $1 billion.
The filing also discloses that Fortress is Vice’s largest secured lender, with a total claim of nearly $475 million.
The lenders' consortium looking to acquire Vice Media has submitted a $225 million credit bid to acquire most of Vice’s assets, along with “significant liabilities,” the New York Times reported, citing a statement from the company.
As part of the deal, the lenders have agreed to lend an additional $20 million to allow the publisher to remain operational during the sales process.
The sale is expected to go through in the next two to three months unless Vice receives a better offer.
This is a developing story.