Vice Media officially filed for bankruptcy today in the United States to facilitate its sale to a lender consortium. A statement from the company indicated it filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the southern district of New York. 

The company said it has “agreed to the terms of an asset purchase agreement” with a consortium of its lenders “subject to higher and better bids from other parties”.

In the meantime, Vice Media properties like Vice, Vice News, Vice TV, Vice Studios and Refinery29 will “continue to produce and deliver award-winning content across platforms”. 

According to Reuters, the lender group, which includes Fortress Investment Group, Monroe Capital and Soros Fund Management, will reportedly provide about $225 million in the form of a “credit bid” for the company’s assets and the assumption of significant liabilities upon closing. Vice Media’s statement said the lender consortium’s cash collateral is $20 million.

The statement also quoted Vice Media’s co-chief executive officers, Bruce Dixon and Hozefa Lokhandwala, as saying the sale process should be completed in the “next two to three months”.

“This accelerated court-supervised sale process will strengthen the company and position Vice for long-term growth...We will have new ownership, a simplified capital structure and the ability to operate without the legacy liabilities that have been burdening our business,” Dixon and Lokhandwala said.

Last month, the New York Times had reported that Vice Media was preparing to file for bankruptcy. This followed layoffs within the company as part of a “restructuring” plan. 

In April, Buzzfeed News was also shut down, with its parent company cutting 15 percent of its workforce across departments.