Vice Media files for Chapter 11 ahead of sale

US publisher Vice Media Group has filed for bankruptcy protection, it was confirmed on Monday, as part of a $225m deal struck with its lenders.

The digital-focused group said a consortium including Fortress Investment Group, Soros Fund Management and Monroe Capital had agreed to buy the company, subject to higher or better bids emerging.

The consortium has agreed to pay $225m in a credit bid for “substantially all” of Vice’s assets as well as assuming “significant” liabilities upon completion. A credit bid allows creditors to swap their secured debt for a company’s assets, instead of paying cash.

To facilitate the deal, Vice said it had also filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Southern District of New York. The court filing listed assets and liabilities in the range of $500m to $1bn.

In a joint statement, co-chief executives Bruce Dixon and Hozefa Lokhandwala said: “This accelerated court-supervised sale process will strengthen the company and position Vice for long-term growth.

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

New York-based Vice started out as a single lifestyle magazine published in Canada, but has since expanded into digital publishing and TV, with a focus on news, entertainment and lifestyle. Its brands including Vice News, Motherboard and Refinery29.

The sale process is expected to complete within two to three months.