BROOKLYN, N.Y.—Vice Media Group has announced that the U.S. Bankruptcy Court for the Southern District of New York has approved the previously announced purchase of Vice by a consortium of its lenders.
The consortium includes Fortress Investment Group, Soros Fund Management and Monroe Capital.
As part of the deal, the investor group has agreed to pay approximately $350 million for substantially all of the Company's assets and assume significant liabilities when the deal closes.
Vice filed for bankruptcy protection in May with an asset purchase agreement (APA) from a consortium of its lenders already in place. The company filed for bankruptcy protection with plans to emerge from bankruptcy as a stronger, more financially healthy company in two to three months.
Vice had once been a highly touted digital media company, valued as high as $5.7 billion with investments from Disney but in recent years has struggled to secure new capital or to sell itself. Under the original APA, the Lender Consortium had planned to purchase the company for $225 million, a price that was since revised upwards to $350 million.
"Vice is one of the world's most trusted brands in news and entertainment, serving a global youth audience with differentiated premium content, experiences, commerce and creative services through a unique collection of brands, formats and distribution channels," said Bruce Dixon and Hozefa Lokhandwala, Vice's Co-CEOs. "Following a robust court-supervised process, we are pleased to receive Court approval for this transaction, which we believe represents the best path forward for Vice. The relationships we have built with our audience, creators, distribution partners, brand and agency constituents are foundational to Vice, and we look forward to strengthening those relationships as we continue to deliver the award-winning storytelling and journalism that Vice is known for."
"Vice produces incredibly compelling and distinctive content that reaches global audiences every single day," said Brian Stewart, Fortress managing director. "As Vice moves into its next chapter, we look forward to working closely with the Company's leadership team to execute on its strategy. We have confidence in the management team and believe that the Company is now well-positioned to build on its strong legacy to create significant value for all its stakeholders."
The transaction remains subject to customary closing conditions and is expected to close on or around July 7, the company said.
