According to The Wall Street Journal, the former professional wrestler, whose real name is Terry Bollea, filed a challenge to Gawker’s plan to sell itself to Ziff Davis or a higher bidder at a bankruptcy auction on the grounds the sale unfairly trades away potentially valuable rights.
Mr. Bollea won a $140 million judgment against Gawker and its CEO Nick Denton due to the release of a sex tape, pushing the company to file for chapter 11 bankruptcy.
Ziff Davis has offered to buy the Gawker publications, which publish “news, scandal and entertainment” under such banners as Gizmodo, Jalopnik and Jezebel.
The $90 million offer will be tested at a bankruptcy auction under rules to be established by a New York bankruptcy judge later this month. Money from the sale will go to pay off Gawker’s creditors, including Mr. Bollea, the company’s largest creditor.
Monday, Mr. Bollea’s lawyers filed papers protesting Gawker’s “stalking horse” deal with Ziff, which will serve as the starting bid for the bankruptcy competition. The objection focused on the inclusion of “avoidance actions” as part of the package of assets being sold. Avoidance actions are lawsuits that could hit Gawker suppliers as part of the bankruptcy process.
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