Gawker files for Chapter 11 bankruptcy following Hogan lawsuit judgment

Hulk Hogan

Tampa Bay Times is reporting that Gawker’s motion to postpone the $140 million judgment against them pending a review from an appeals court has been granted by a judge today in another hearing. Shares from the company will be used as a security instead.

Meanwhile, Gawker has filed for Chapter 11 bankruptcy following the case and is being held up in auction according to the Wall Street Journal. The auction will begin with an opening bid of $100 million.

The two defendants, AJ Daulerio, who wrote the original Hogan sex tape post, and Nick Denton, CEO of Gawker Media, cannot afford to pay that amount of money so their shares in the company were pledged. Daulerio has 6,000 shares while Denton has 45 million shares according to the Tampa Bay Times.