Togut, Segal & Segal LLP is pleased to announce that the Chapter 11 restructuring and sale of Vice Group Holding, Inc. (n/k/a Venus Liquidation Inc.) was awarded the Distressed Investment Deal of the Year for the Middle Market category at the Global M&A Network 16th Annual Turnaround Atlas Awards, which were held on September 10, 2024 in New York. The Togut Firm served as restructuring counsel to Vice Media and 32 of its affiliates, collectively a global digital media company once valued at $5.7 billion, in their Chapter 11 cases filed in the Bankruptcy Court for the Southern District of New York. A&O Shearman served as co-counsel to the debtors. Frank A. Pometti from AlixPartners served as the Debtors’ Chief Restructuring Officer with AlixPartners providing financial advisory support to the Debtors.
Vice Media entered chapter 11 in May 2023 with severe liquidity constraints, and sought a highly expedited going concern sale to a stalking horse purchaser to preserve and maximize value, as well as preserve a substantial part of their workforce who would be offered employment by the stalking horse purchaser. In less than 40 days from the Petition Date, following multiple hearings and the solicitation of higher or better offers, the Togut Firm and A&O Shearman obtained an order from the Bankruptcy Court approving the proposed sale based on a $350 million “credit bid” to a consortium of stalking horse purchasers, including Fortress Investment Group, Soros Fund Management and Monroe Capital. The closing of the sale occurred, effective as of July 31, 2023, following a settlement among the debtors, the purchasers, and the Official Committee of Unsecured Creditors. Following the sale, the Togut Firm and the debtors’ Chief Restructuring Officer negotiated settlements with key creditor constituents that paved the way for a confirmable Chapter 11 Plan, which funded a Plan Administrator to pursue retained causes of action on behalf of unsecured creditors and to complete the administration of the chapter 11 cases.
The Global M&A Network Turnaround Atlas Awards honor the best value-creating transactions, outstanding firms, and leaders from the Americas and the Global Markets transactional communities. Winners of the Global M&A Networks awards are selected based on “deal criteria,” experience, and expertise.
