Court Denies Plea for Extension of Bankruptcy Protection to Gawker Media Founder

by San Antonio Attorney

Nick Denton, founder of Gawker media, was denied by a judge to receive bankruptcy court protection by extending the company’s automatic stay to him.  He could be facing personal bankruptcy after the Manhattan bankruptcy court ruling on July 19, 2016.

Gawker Media, suffering from financial troubles and controversy, filed for bankruptcy protection last June.  This filing came three months after former wrestler Hulk Hogan won a lawsuit against the digital publisher, which was worth $140 million.

Peter Thiel, a well-known billionaire technology investor, also acknowledged the act of bankrolling the former wrestler’s lawsuit against the digital publishers, along with other litigations.

Thiel’s move against Gawker was the ultimate retribution, since revealing the true sexuality of the co-founder of PayPal founder last 2007.  Gawker has also revealed other posts against Thiel.

After the court ruling in Manhattan, Gawker Media founder Nick Denton released a public statement last Thursday.

Denton said that Thiel’s revenge against his company pushed to file bankruptcy protection until the appeals court in Florida can rule the judgment costing $140 million.

Denton has placed his top priority on the sale process that is due to conclude in one month, thus maintaining the value and operation of the business.

Denton added that the ordeal will soon end after the popular brands of the digital publisher will fall under a new proprietorship and the reaffirmation of a ‘free and critical press’ will be more emphasized.

Denton also publicly sent a message to Thiel through CNBC, personally requesting to stop targeting his journalists.

On the other hand, Thiel released his statement in the New York Times last May, clarifying that his move was less on revenge and more on ‘specific deterrence’, placing importance on maintaining people’s personal integrity.

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