Hulk Hogan Verdict Lands Gawker in Bankruptcy
June 10, 2016
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Gawker Media filed for bankruptcy protection due to the $140 million verdict to Hulk Hogan after they published a video of him having sex with his best friend's wife.
I saw people celebrating the bankruptcy news, but this action allows Gawker to delay any payment to Hogan. The bankruptcy also allows the company "to continue operating and paying its staff" with a $22 million loan.
The Chapter 11 bankruptcy claim actually puts Gawker under federal protection so they can reorganize and pay their debts:
Under Chapter 11, a debtor can restructure its finances through a plan of reorganization approved by the bankruptcy court. By reducing obligations and modifying payment terms, a Chapter 11 plan can help a debtor balance its income and expenses, regain profitability, and continue in operation. Under Chapter 11, a debtor also can sell some or all of its assets so it can downsize its business if necessary or pay down claims that it owes.The company "listed estimated assets of $50 million to $100 million and liabilities of $100 million to $500 million." Gawker includes Deadspin and Jezebel.