PWInsider is reporting Vice Media, the parent company of the network Vice TV which airs Dark Side of the Ring has filed for Chapter 11 bankruptcy today.
The company was once valued at $6bn but has agreed sale for $225m, which is expected to be finalized in the next few months.
The Chapter 11 filing states that VICE's management "has determined that it is advisable and in the best interest of the Vice Group Companies to enter into a stalking horse agreement for the sale of substantially all assets and related auction procedures." A "stalking horse" agreement is when a potential buyer is in place in advance of a bankruptcy filing.
“This accelerated court-supervised sale process will strengthen the Company and position VICE for long-term growth, thereby safeguarding the kind of authentic journalism and content creation that makes VICE such a trusted brand for young people and such a valued partner to brands, agencies and platforms," Hozefa Lokhandwala and Bruce Dixon, VICE’s CEOs, said in a statement. "We will have new ownership, a simplified capital structure and the ability to operate without the legacy liabilities that have been burdening our business. 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."
Vice said the lender consortium that includes Fortress Investment Group, Soros Fund Management and Monroe Capital will provide about $225 million in credit bid for almost all of its assets and also assume significant liabilities at closing.
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