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.
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.
(via Hollywood Reporter)