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After Hulk Hogan win, Gawker files for bankruptcy

Tennessee fans of Hulk Hogan are probably aware that the wrestling star recently won a lawsuit against Gawker Media for $140 million. It has now been reported that Gawker filed for Chapter 11 bankruptcy protection and is offering its assets for sale. The company's bankruptcy petition was filed on June 10.

Reportedly, Ziff Davis has made an offer of $100 million to purchase Gawker's assets. The bankruptcy court would need to approve any such sale first. It will hold an auction for the company's assets beginning in July. If no other offer is made, Ziff Davis is willing to purchase the assets but not its liabilities.

Gawker reports it has assets of between $50 and $100 million and liabilities between $100 and $500 million. Gawker owns Lifehacker, Gizmodo and Deadspin. All three are expected to continue operating during the bankruptcy proceeding. Ziff Davis owns PCShopper, Computer Mag and AskMen. The company stated that Gawker's assets would fit perfectly with its properties.

Chapter 11 bankruptcy may be an option for a company that needs to reorganize its obligations. This allows a business to repay its creditors over an extended period of time. In Gawker's case, Hulk Hogan is its largest creditor and would likely receive the largest share of the payments the company makes through its bankruptcy proceeding. Business owners who are interested in learning about Chapter 11 bankruptcy and whether it might be a good option for their businesses may want to consult with a bankruptcy attorney who can describe the process and the requirements.

Source: USA Today, "Gawker files bankruptcy after Hogan lawsuit as Ziff Davis shows interest," Roger Yu, June 10, 2016.

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