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“Vice’s Bankruptcy Forces Soros and Fortress Into a Tight Spot as They Seek a New Buyer”

Soros, Fortress in a vise to find new buyer for bankrupt Vice

Soros, Fortress in a vise to find new buyer for bankrupt Vice

Vice Media’s plan to sell itself may have hit a wall as insiders say the likelihood of finding an outside buyer is slim. This comes as the gonzo news company filed Chapter 11, with an auction scheduled for 22 June, to pave the way for its sale. Court documents revealed that in the event that no outside offer comes through, Vice will then be purchased by its creditor, including Fortress Investment and George Soros’ Soros Fund Management for $225m. However, insiders say that neither party expected to run the media company, and that they were caught unaware by the bankruptcy filing.

Sources close to the company have said that the planned sell-off of the company in parts, in a bid to make it more appealing to buyers, may not be possible. While there is reportedly a potential buyer for Refinery29, Group Black, who had earlier explored the option of bidding $400m on Vice, is no longer interested.

Many insiders see Vice as being too toxic to warrant a buyer. “What media or finance executive is going to risk their career in order to buy Vice? Look how many careers it has already destroyed,” said one media insider.

A spokesperson for the company denied that this was the case: “The premise of this story is 100% false.” Meanwhile, Perry Mandarino, co-head of restructuring and at B Riley Securities, said that filing for Chapter 11 bankruptcy to find a buyer may be the only way to get a sale.

Soros, Fortress in a vise to find new buyer for bankrupt Vice
Soros, Fortress in a vise to find new buyer for bankrupt Vice

New buyer sought for Vice as Soros and Fortress face financial pressures

Vice Media is on the brink of being sold for $225 million to its creditors, including the Soros Fund Management and Fortress Investment, with insiders saying the chances of finding an outside buyer are slim. If no external offer is made at the auction later this month, the company will be purchased by its creditor group. However, those close to George Soros and Fortress claim neither group believed they would end up owning a media company. A source claims that VICE’s creditors have been caught unprepared by the company’s bankruptcy filing.

The hope of VICE looking to sell its assets individually appears unlikely, even with a potential buyer for Refinery 29. In addition, a $400 million bid by Group Black for VICE earlier this year is no longer on the table as the company shifts its focus to a potential bid for BET Media Group. The media outfit previously hoped that bankruptcy would make its assets more attractive to potential buyers as no debt would be taken on.

However, media insiders claim it is not a surprise that VICE is seeing little interest from buyers, stating the media company is so toxic that even if it were free, no one would want it. Also, the company has destroyed many careers in journalism and finance, deterring potential suitors. Despite this, a spokesperson for the company said, “The premise of this story is 100% false.”

The final auction for VICE Media will take place on June 22.

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