Vice Media Group, known by the websites Vice and Motherboard, filed for bankruptcy on Monday to plan its sale to a group of lenders.
The bankruptcy filing comes amid a very difficult time for several technology and media companies, as they have resorted to downsizing in recent months due to a troubled economy and a weak advertising market.
Vice was among a group of fast-growing digital media ventures that once earned rich valuations as they attracted young audiences and beyond. He emerged alongside his co-founder, Shane Smith, who built his empire starting with a single Canadian magazine.
Vice Media Group files for bankruptcy
In April, the company said it would cancel the popular television program “Vice News Tonight” as part of a broader restructuring that would result in job cuts across the company's global news business.
Vice reported that the consortium of lenders, which includes Fortress Investment Group, Soros Fund Management and Monroe Capital, will provide approximately $225 million in the form of a credit offering for all of the company's assets and will assume significant financial obligations during closure.
In a credit offering, creditors can exchange their secured debt, rather than paying cash, for the company's assets.
The company had assets and financial liabilities of between $500 million and $1 billion, according to the court report.
Vice said it is committed to repaying more than $20 million in cash to fund its business throughout the sale process.