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.

BROOKLYN, N.Y.—Vice Media Group has filed for Chapter 11 bankruptcy as part of an asset purchase agreement (APA) with a consortium of its lenders that the company believes will allow it 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 APA, the Lender Consortium could purchase the company for about $225 million unless higher bids come in from other companies. The bankruptcy court will supervise the sales process.  

The Lender Consortium includes Fortress Investment Group, Soros Fund Management and Monroe Capital. It has agreed to provide total purchase consideration of approximately $225 million in the form of a credit bid for substantially all of the Company's assets, in addition to the assumption of significant liabilities upon closing, the parties said. 

To facilitate the sale, Vice has filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. 

In announcing the deal, Vice said it continues to operate normally and that it has obtained commitments for debtor-in-possession (DIP) financing from the Lender Consortium, as well as consent to use more than $20 million of cash that constitutes the cash collateral of the Lender Consortium. 

Vice said that it anticipates that this financing, as well as the cash generated from ongoing operations, will be more than sufficient to fund its business throughout the sale process, which it expected to conclude in the next two to three months.

All of Vice's multi-platform media brands, including Vice, Vice News, Vice TV, Vice Studios, Pulse Films, Virtue, Refinery29 and i-D, will continue to produce and deliver content across platforms, the company said. 

Substantially all of the company's international entities, and the Vice TV joint venture with A&E, are not part of the Chapter 11 filing.

"Vice serves a huge global audience with a unique brand of news, entertainment and lifestyle content," said Bruce Dixon and Hozefa Lokhandwala, Vice's co-chief executive officers. "This accelerated court-supervised sale process will strengthen the Company and position Vice for long-term growth, thereby safeguarding the kind of authentic journalism and content creation that makes Vice such a trusted brand for young people and such a valued partner to brands, agencies and platforms. We will have new ownership, a simplified capital structure and the ability to operate without the legacy liabilities that have been burdening our business. We look forward to completing the sale process in the next two to three months and charting a healthy and successful next chapter at Vice."

SAN FRANCISCO—Fox’s free streaming service Tubi has announced an exclusive content deal with Vice Media Group to debut eight Tubi Original documentaries, with the first one, The Cult Of Elon, set to debut on April 24. 

The doc follows the story of Elon Musk and Tesla's success, examining his path to becoming one of the most influential (and controversial) businessman by creating an immensely powerful cult of personality. 

The second original Tubi documentary Vigilante, Inc. will debut on May 6, investigating the volatile world of online vigilantism, as told through a recent manhunt for an arsonist in Los Angeles. 

The remaining documentaries, covering such topics as chatbot technology, mass shootings in the US, and ticket scalping, will debut throughout this year.

"Vice has a longstanding reputation of award-winning investigative storytelling and we're excited to expand Tubi Original Documentaries with their expertise," said Adam Lewinson, chief content officer, Tubi. "These original documentaries will raise the curtain and spark conversation on stories that tap into today's cultural zeitgeist, including ticket scalping, chatbots and the rise of online vigilantism."

Beverly Chase, vice president of current programming at Vice News, will oversee the partnership with Tubi.

NEW YORK—NewBay Media’s Virtual Reality 20/20 Summit has added another name to its list of speakers, Vice Media’s Head of Content Ciel Hunter. She is set to take part in the New Publishing Model panel that is scheduled for Oct. 17.

For more information, read the full story on TVT’s sister publication TWICE.