The recent news of Vice Media LLC filing for bankruptcy protection has marked a sharp decline for the once-successful media company. Vice, which was valued at $5.7 billion after securing a $450 million investment from TPG private equity firm in 2017, has listed assets and liabilities between $500 million to $1 billion in its Chapter 11 petition filed in Southern District of New York. One of the biggest secured creditors, Fortress Credit Corp., has claims totaling about $475 million.
This decision follows Vice's recent closure of its flagship TV news show and the laying off of more than 100 staff members in April. The governing body that includes boards of all group companies has recommended that Vice obtain the debtor-in-possession financing negotiated with their existing term lenders, as it would be in the best interest of Vice Media, its creditors, and other interested parties.
Founded nearly three decades ago as an alternative magazine in Montreal, Vice gained global recognition in the mid-aughts for its documentary-style videos that often went viral and captured the attention of young viewers. Despite having investors like Walt Disney Co. and Fox Corp., Vice struggled to generate profits and is now estimating that it has over 5,000 creditors with funds available for distribution to unsecured creditors.
The decline of Vice Media LLC highlights the challenges faced by media companies in an ever-changing landscape, where generating profits can be difficult.
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