Gawker Media Group will head to bankruptcy court Monday in hopes of putting itself up for sale following a crippling legal judgment.
The media company will ask the Manhattan bankruptcy court to sign off not only on its sale timeline, but also the stalking horse, or lead, offer from Ziff Davis LLC.
Gawker, which publishes blogs under the banners of Gizmodo, Jalopnik and Jezebel, filed for bankruptcy earlier this month with a $ 90 million offer from Ziff Davis, the digital-media company and magazine publisher. The offer, however, is subject to higher bids. Gawker has mapped out a timeline that calls for other offers by July 27, and if needed, an auction to be held on July 29.
The sale has already faced opposition from Hulk Hogan. Lawyers for the former professional wrestler, whose real name is Terry Bollea, recently filed a challenge to the sale plan, saying it would unfairly trade away potentially valuable legal rights that could ultimately boost Gawker creditors’ payout at the end of the bankruptcy. Mr. Bollea is a key creditor in Gawker’s bankruptcy proceeding because he won a $ 140 million judgment against Gawker and Chief Executive Nick Denton in a privacy lawsuit.
Also Monday, teen retailer Pacific Sunwear of California Inc. will ask the Wilmington, Del., bankruptcy court to move its bankruptcy proceedings along. The teen retailer is specifically seeking approval to put its reorganization plan to a creditor vote.
Only unsecured creditors owed roughly $ 60 million will be allowed to vote on the plan. Some creditors within that group, owed between $ 11 million and $ 22 million, are expected to recover up to 3.6% of what they are owed under the plan.
PacSun filed for bankruptcy in April after negotiating a restructuring deal with private-equity lender Golden Gate. The company has agreed to swap 65% of the $ 88 million in debt it is owed for equity in the restructured company, subject to rival bids; none were received.
Golden Gate has also agreed to invest $ 20 million in the reorganized retailer.
-Peg Brickley and Tom Corrigan contributed to this article.