Site icon Gadgets Africa

Vice Media files for bankruptcy

Vice Media files for bankruptcy

Vice Media Group, known for websites such as Vice and Motherboard, declared bankruptcy on Monday.

This is in an attempt to execute a sale to a group of lenders, bringing to a close years of financial troubles and top-executive departures.

The bankruptcy filing is the result of a difficult moment for many technology and media organisations, which have been slashing expenses in order to survive a weak advertising market and decreasing economic growth.

Vice stated that the lender consortium, which comprises Fortress Investment Group, Soros Fund Management, and Monroe Capital, will submit a credit bid of about $225 million for practically all of its assets and will also assume major liabilities at completion.

Creditors might use a credit bid to exchange their secured debt for the company’s assets rather than paying cash.

Vice listed assets and liabilities in the $500 million to $1 billion range.

“Creditors are taking it (Vice) over at a steep discount, and we will find out whether they can become viable with a much slimmer capital structure coming out of bankruptcy,” said Thomas Hayes, chairman of investment company Great Hill Capital.

Vice was one of a slew of fast-rising digital media companies that had lofty valuations as they courted millennial audiences. It grew to fame with its co-founder Shane Smith, who established his media empire with a single Canadian magazine.

On April 27, the firm announced the cancellation of the popular TV show “Vice News Tonight” as part of a broader restructuring of its news division. BuzzFeed had announced the closure of its news division just a week before.

Exit mobile version