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.