Hulk Hogan Withdraws Objection to Gawker Bankruptcy Sale

by San Antonio Attorney

Former American wrestler Hulk Hogan withdrew his objection to a sale plan of Gawker Media.

At a hearing on July 7, U.S. Bankruptcy Judge Stuart Bernstein authorized a procedure for Gawker’s sale, which is expected to happen in about a month.

Hulk Hogan, born Terry Bollea, originally disagreed to the auction process because it includes the valuable rights that, according to him, should go to the creditors of Gawker.  Hulk Hogan dropped his objection before the hearing’s schedule.  Court papers show that he is no longer interested in the plan to sell the assets of the online media company.

Hulk Hogan was awarded $140 million for a judgment against the online publisher and Denton arising from a sex tape lawsuit.  Denton and a former Gawker employee are liable for the judgment amounting to $115 million.  The ruling was upheld by a Florida judge and the company was required put up a bond amounting to $50 million, which eventually caused it to file for Chapter 11 bankruptcy in June.

Upon filing Gawker’s bankruptcy case, the company has been protected from Hulk Hogan lawsuits.  However, the writers and employees of Gawker have no protection against pending litigations in connection with Gawker articles.

The attorneys of Gawker are seeking to bring protection to Denton and others under the automatic stay provided by the bankruptcy law.  They said that if their request will be denied, Denton and the others will file for personal bankruptcy.

Hulk Hogan opposed Gawker’s request to extend the company’s bankruptcy protection to Denton.

The court battle between the two sides has temporary ceased until July 13.

Gawker, the publisher of Lifehacker, Gizmodo, Jezebel and Kotaku, is still operating while it goes through the bankruptcy process.  At the hearing on July 7, Judge Bernstein authorized a $ 22 million emergency loan package from a Cerberus Capital Management affiliate.  Cerberus will not be participating in the auction for Gawker, according to the publisher’s attorney.

Leave a Comment

Previous post:

Next post: