No, because the liabilities are getting discharged with the results of the sale. Essentially, Gawker isn't selling itself. Gawker is essentially exchanging itse

No, because the liabilities are getting discharged with the results of the sale. Essentially, Gawker isn't selling itself. Gawker is essentially exchanging itself for the liabilities to their creditors, and the creditors are then selling it in lieu of Gawker paying their debts. Really simplified example: suppose you're 12, you own a lemonade stand, and you owe your dad $200 (secured against the lemonade stand). It's not going well, so you go through bankruptcy - dad now owns the lemonade stand, you no longer owe dad any money, and he goes and sells it for whatever he can get (say, $100). $100 is a sensible bid for the stand because the debt to the kid's dad has already been discharged.