afaqs! news bureau

Digital media and broadcasting company VICE files for bankruptcy

The US based media company, which was once valued at $5.7 billion, has said that it is in talks with creditors for the purchase of its assets for $225 million.

Digital media and broadcasting company VICE media has filed for bankruptcy on May 15. VICE media operates Vice News and Motherboard websites, in house creative ad agency Virtue, talent management firm Pulse films, and women oriented media website Refinery29.

The company, which was valued at $5.7 billion in 2017, filed for bankruptcy protection under Chapter 11 of United States Bankruptcy Code. The company listed its assets and liabilities in the range of $500 million to $1 billion in this petition. This code is also called "reorganisation" bankruptcy. The company filing this bankruptcy protection may continue to operate its business, and can borrow new money with court approval.

A New York Times report has said that Fortress Investment Group and Soros Fund Management, which are the main investors for VICE Media, have secured a $20 million loan for the company to continue its operations.

Vice announced in a statement that it has reached a deal with its creditors including Fortress Investment Group, Soros Fund Management and Monroe Capital for the purchase of its assets for $225 million and assume significant liabilities. This agreement allows rival bidders as well.

The company expects this sale to complete in two to three months. News reports have mentioned that the company's websites won't be shutdown as of now as it deals with the financial crisis. The company has also tried to find a buyer willing to pay its asking price of more than $1 billion.

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