Former Vice Group files Chapter 11 plan of liquidation

By Sarah Lizee

Olympia, Wash., Dec. 19 – Venus Liquidation Inc., formerly Vice Group Holding Inc., filed a Chapter 11 plan of liquidation and related disclosure statement with the U.S. Bankruptcy Court for the Southern District of New York.

As background, Vice Group closed the sale of its assets to a group of lenders including Fortress Investment Group, Soros Fund Management and Monroe Capital. The purchase price was a $350 million credit bid in addition to the assumption of significant liabilities.

Under the plan, secured tax claims, other secured claims and other priority claims are unimpaired.

Holders of prepetition senior secured credit agreement claims will receive, after the satisfaction of a $12 million sharing threshold under a settlement with the official committee of unsecured creditors, a pro rata share of the plan administrator net recovery, which includes the net proceeds for distributions and payments required to be made under the plan determined by the plan administrator with respect to the GUC cash reserve of $500,000, net available cash and recoveries resulting from the possible prosecution of the GUC reserved litigation claims by a plan administrator.

Until satisfaction of the sharing threshold under the committee settlement, any portion of the plan administrator net recovery that would otherwise be distributed on account of the prepetition senior secured credit agreement claims, including as a result of the enforcement of the turnover provisions with respect to the senior subordinated notes claims and pulse notes claims, will be made available for distribution to holders of general unsecured claims.

JPMorgan, on behalf of its overdraft facility claim, will receive treatment it has agreed to with the purchaser.

Holders of senior subordinated notes claims, Pulse note claims and general unsecured claims will receive their pro rata share of the plan administrator net recovery.

Existing interests will be eliminated with no recovery.

Vice is a global multi-platform media company with headquarters in Brooklyn, N.Y. The company filed bankruptcy on May 15, 2023 under Chapter 11 case number 23-10767.

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