Jalopnik On Course to Receive Old Chrysler Money

Steph Willems
by Steph Willems
jalopnik on course to receive old chrysler money

Famous for being a failed savior, a financial hound of Hades has come to the aid of Gawker Media and its many online publications.

Cerberus Capital Management L.P., the infamous private equity firm that produced headline gold — and not much else — after its ill-fated 2007 purchase of Chrysler, is now offering cash to another bankrupt company. The firm announced it will hand Gawker $22 million to keep the lights on while the media giant completes its bankruptcy proceedings and sell-off.

Gawker filed for Chapter 11 bankruptcy on June 10 after being ordered to pay $140 million in damages to former wrestler Hulk Hogan. The verdict followed a lawsuit that stemmed from Gawker’s airing of a sex tape of the former WWF star.

The Cerberus cash — offered as a loan, not a gift — allows Gawker to pay its employees, while also paying off its lender bank. Without it, the company would be forced to liquidate.

In 2007, Cerberus bought a controlling stake in DaimlerChrysler, which then spun-off Chrysler LLC. Within two years, the economy imploded and the automaker filed for bankruptcy, wiping out the firm’s 80-percent stake. Cerberus shuffled away as the federal government intervened to save the automaker.

Gawker has a buyer lined up — no, not Fiat — so the cash just has to tide the company over until media company Ziff Davis LLC plunks down $90 million in its ownership bid. (A July auction could see other players outbid Ziff Davis.)

For the sake of Gawker-owned automotive publication Jalopnik, let’s hope former Cerberus-installed Chrysler CEO (and Home Depot fan) Bob Nardelli doesn’t read this old column.

[Sources: Wall Street Journal, Reuters] [Image: Greg Gjerdingen/ Flickr]

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33 of 41 comments
  • Bkrell Bkrell on Jun 14, 2016

    Everyone at Jalopnik must be forced to drive a Crossfire as a daily driver until said loan is paid off.

    • See 2 previous
    • Bkrell Bkrell on Jun 14, 2016

      @WV Cycling I only said Crossfire because PT Cruiser would be outright sadism on my part.

  • Corey Lewis Corey Lewis on Jun 14, 2016

    "after its ill-fated 2007 purchase of Chrysler" Ill-fated but brilliantly planned. Cerberus is a financial strip mining operation.

    • See 9 previous
    • 28-Cars-Later 28-Cars-Later on Jun 14, 2016

      @28-Cars-Later Thanks for the explanation.

  • Jagboi Jagboi on Jun 14, 2016

    I'd much rather have the Jaguar XJ8 next to the Chrysler in the photo.

    • See 15 previous
    • MRF 95 T-Bird MRF 95 T-Bird on Jun 16, 2016

      @28-Cars-Later It actually was an attractive car with it's psudo Jag/Aston styling.

  • HotPotato HotPotato on Jun 16, 2016

    Ah, the company whose name literally means "the hound of Hades." The company whose investments chairman is noted half-wit Dan Quayle. The company which decided Bob Nardelli, crowned by CNBC as America's worst CEO, was just the guy to run Chrysler. Well, this should be good. *munches popcorn*