Gawker CEO Faces Objection on Bankruptcy Shield

by San Antonio Attorney

Hulk Hogan, embroiled in a legal battle over a sex scandal, fights back over Gawker Media’s recent bankruptcy filing.

Hogan is unable to collect a jury verdict worth $140 million against the multimedia site due to the recent bankruptcy petition filed last June 10, according to the court papers.

The court papers stated that the company has been trying to protect its chief executive and founder.

Nick Denton is part of the overall verdict.  Hogan claims that Gawker gave a loan worth $200,000 to Denton in the same week that they filed for bankruptcy.

The strategy of Gawker is to sell their company through an auction supervised by court.  This will done by pursuing an appeal of judgment after Hogan won a lawsuit over the spread of a video revealing him having sex with his friend’s wife.

Should Gawker lose in the lawsuit, all video sales will go to Hulk Hogan.  Denton established Gawker through a blog in his apartment in New York last 2002.

The effort to protect Denton is ‘transparent’ since it is a move to provide protection from personal bankruptcy.

Denton does not have coverage from any additional fees, damages and other loss from the lawsuits caused by Gawker, according to Hogan.  There was even an agreement between Denton and the company that strictly condones any indemnification for misconduct and gross negligence.  Denton, even as the CEO of the media company, violated this rule.  Hogan added that if Gawker was indeed a good company, it would’ve opposed with the agreements to cover Denton’s lawsuit costs.

The loan, worth $200,000, was given to Denton as a means to pay his own bankruptcy counsel without any due obligation to pay for any collateral.  Denton is held liable, along with his media company for the overall $115 million worth of compensation with the verdict, according to court papers.

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