Once worth billions, Vice files for bankruptcy

Vice, a digital publisher once worth nearly $6bn (£5bn) and whose assets include Vice News, Motherboard, Refinery29 and Vice TV, has filed for bankruptcy protection in the US amid cut-price sale to consortium.

The company has agreed a sale to a consortium that includes Fortress Investment Group, Soros Fund Management and Monroe Capital for $225m in the form of a credit bid for its assets as well as assuming Vice's "significant liabilities", reports the Guardian.

According to reports, creditors will be able to swap their secured debt, rather than pay cash, for the company's assets.

Vice, which had been had been seeking a sale of about $1.5bn, stated that it "expects to emerge as a financially healthy and stronger company" when the process concludes.

As per the deal, the lenders are expected to provide more than $20m and other financing to fund Vice throughout the sale process. However, Vice could still be sold to a third party if a higher bid emerges.

The sale, which is expected to take two to three months, comes after years of financial difficulties and executive turmoil at the company.

"This accelerated court-supervised sale process will strengthen the company and position Vice for long-term growth," said Bruce Dixon and Hozefa Lokhandwala, co-chief executive officers at Vice.

"We will have new ownership, a simplified capital structure and the ability to operate without the legacy liabilities that have been burdening our business."

In 2017, Vice hit a valuation of $5.7bn as media giants including Rupert Murdoch, WPP and Disney clamoured for a slice of its youth appeal.

According to the two individuals familiar with the conversations, Disney, after investing hundreds of millions in Vice, explored buying the company in 2015 for more than $3 billion.

In February, Fortress, the company's debt holder, extended a $30m funding line to let Vice pay overdue bills to vendors.

In April, after two years of evaluating its future since plans to float using a special purpose acquisition vehicle (Spac) collapsed, the company announced the end of its popular Vice News Tonight as part of a restructuring that could make more than 100 staff being made redundant.

More than two decades ago, Vice was launched as a punk magazine in Montreal.

Over the years, it blossomed into a global media company with a movie studio, an ad agency, a glossy show on HBO and bureaus in far-flung world capitals.