Vice Media Group has filed for Chapter 11 bankruptcy protection in the Southern District of New York on Monday to facilitate its sale to a group of lenders. The move has been taken to safeguard the company’s future which has been struggling with financial difficulties and top-executive departures.

What is Chapter 11 bankruptcy?

A case filed under United States Bankruptcy Code’s chapter 11 is usually referred to as a “reorganization” bankruptcy. Typically, the debtor continues to be “in possession,” has the rights and obligations of a trustee, is permitted to carry on with its company, and is permitted to borrow further funds with the court’s permission.

A proposed plan of reorganization is put forth, the affected creditors have the opportunity to vote on it, and if it receives the necessary support and complies with the law, the court may approve the plan.

Also Read: Who is Marcus Banksbey? Former Army chaplain arrested for California crime spree

According to a statement by Vice, the lender consortium consisting of Fortress Investment Group, Soros Fund Management and Monroe Capital will provide a credit bid of $225 million for substantially all of its assets and also assume major liabilities at the closing.

Also Read: Who is Jamye Bond? Suspect arrested in Shively Animal Clinic, Louisville shooting

A court filing showed that Vice has listed its assets and liabilities in the range of $500 million to $1 billion. The company, which publishes news, technology and lifestyle websites such as Vice, Motherboard and Refinery29, has further stated that it has received commitments from lenders for debtor-in-possession financing, as well as consent to use over $20 million in cash, which it said will be “more than sufficient” to fund its business throughout the sale process.

Also Read: Where is Scott Baio now? Actor living in Florida, left California over homeless crisis, crime

The sale process, which is expected to conclude in the next two to three months, will allow other parties to offer “higher or better bids”, the company has said. Vice TV and other international entities of the company are not part of the chapter 11 filing or the sale process, it added.