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Hulk Hogan: Gawker Made Secret Loan to Denton Before Bankruptcy

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Hulk Hogan doesn’t think that Gawker’s Chapter 11 should save Nick Denton from having to declare personal bankruptcy. In new filings on Tuesday, Hogan’s lawyers accuse Denton of doing things like getting a pre-bankruptcy loan from Gawker and making misrepresentations to a Florida court.

The former professional wrestler, whose real name is Terry Bollea, continues his drive to collect on a $140.1 million judgment resulting from a March trial in Florida over Gawker’s posting of an excerpt of a sex tape. On June 10, Gawker filed for bankruptcy and also primed the way to sell the company at auction to Ziff Davis or another company. That same day, Gawker brought an adversary proceeding against its legal foes with the intention of holding Hogan and others back on their collection efforts. Denton is personally liable for $10 million.

The parties agreed to a temporary restraining order, but as the bankruptcy judge contemplates converting the TRO into a preliminary injunction that would prevent Hogan from going after Denton, Hogan is lashing back.

According to the latest Hogan court filing, “While Mr. Bollea has no interest in impeding the sale of Debtor’s assets, he does not believe that non-debtor, intentional tortfeasors should be entitled to a stay of execution without either filing for personal bankruptcy protection or complying with Florida law requiring good and sufficient security to stay execution pending appeal.”

Hogan’s court papers talk about a “very unusual” move that Gawker made on the brink of bankruptcy. – READ MORE

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