Vice Media Group, the company popularly known for its websites such as Vice and Motherboard, said on Monday it had filed for Chapter 11 protection to facilitate its sale to a consortium including a hedge fund founded by Jewish billionaire George Soros.
The company said in a court filing that it listed both assets and liabilities in the range of $500 million to $1 billion.
Vice also said the group agreed to the terms of an asset purchase agreement with a consortium of its lenders, which included Fortress Investment Group, Soros Fund Management, and Monroe Capital.
The consortium agreed to provide total purchase consideration of approximately $225 million in the form of a credit bid for substantially all of the company's assets, in addition to the assumption of significant liabilities upon closing, the statement said.
Why is Vice filing for bankruptcy?
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 a weak advertising market.
Vice has also obtained commitments for debtor-in-possession financing from the lenders, as well as consent to use more than $20 million of cash that constitutes the cash collateral.
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 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.