Vice Media Group, known for popular websites including Vice and Motherboard, filed for bankruptcy protection on Monday to engineer its sale to a group of lenders.
The bankruptcy filing for the company, which was once valued at $5.7 billion, is part of the fallout from a challenging period for many technology and media companies that have been cutting costs to survive a weak advertising market amid slowing economic growth.
The company listed both assets and liabilities in the range of $500 million to $1 billion.
Under a credit bid, creditors can swap their secured debt, rather than pay cash, for the company's assets.
The company has received commitments and consent from the lenders to use more than $20 million in cash, which it said will be “more than sufficient” to fund its business through the sale process.
Vice was among a group of fast-rising digital media ventures that once had rich valuations as they courted millennial audiences.
It rose to prominence alongside its co-founder Shane Smith, who built his media empire from a single Canadian magazine.
The company had on April 27 said it would cancel popular TV programme Vice News Tonight as part of a broader restructuring of its news division.
A week before that, BuzzFeed said it would shutter its news division. MTV News also closed down this month.
Reuters contributed to this report
