Gawker Media files for bankruptcy:
Gawker Media has filed for Chapter 11 bankruptcy after a Florida judge issued a $140 million final judgment in favor of Hulk Hogan in the invasion-of-privacy lawsuit over the posting of a sex tape.Thank you, Peter Thiel! We are all Hulkamaniacs now.
The online news organization founded in 2003 by Nick Denton which now includes other sites like Deadpin, Jezebel and Kotaku, reports that it has less than $100 million in assets and hundreds of millions in liabilities. Gawker is currently facing a wrath of litigation that's been connected to Silicon Valley billionaire Peter Thiel. Besides the Hogan suit, there's claims from a journalist and the alleged inventor of e-mail who both say they were defamed. Gawker is also facing off against the parent company of Daily Mail in court and was hit with a copyright lawsuit this week over a photograph of an Uber car.
Gawker has hired the investment bank Houlihan Lokey to advise it on both a possible sale and the restructuring process.
According to bankruptcy papers, Gawker has also secured a $7.66 million loan from Silicon Valley Bank with a line of credit of $5.3 million. Additionally, it's got a second credit agreement worth $15 million with US VC Partners. All told, that's $22 million in debtor financing as Gawker aims to restructure itself and fight off collection efforts from Hogan as its dispute with the former professional wrestler goes to an appeals court.