10:55AM: The estate's petition was granted by a judge and they have been given permission to sell all Hef's ownership in Playboy.
According to documents filed in Hefner's estate, and obtained by The Blast, the trustee wants a court order to exercise a liquidity clause to determine how much Hef's piece of the Playboy empire is worth, and then sell it off.
Adam Streisand, the attorney for Hefner's estate, tells us, "Hef was an American original. He left Playboy in great hands, but with Hef gone, it's time for us to close that chapter and focus the future on Hef's charitable vision."
During his life, Hefner transferred to himself, as trustee of the trust, his entire ownership interest in Icon Acquisition Holdings LLC, which owns and operates Playboy Enterprises. At the time of his death he owned 33.8% equity interest in Playboy.
Problem is, Hef stipulated that anything sold must go down within 90 days after his death, so they have a fast approaching deadline of December 26.
Sources close to the deal tell The Blast Hef's piece of Playboy is worth millions, and the money collected will be used to pay off his outstanding estate tax and then divided up between the beneficiaries in his trust.
Once a valuation for Hef's interest in the company is agreed upon, Playboy has a chance to buy it back or put it up for sale to the highest bidder -- which could mean a complete overhaul in the structure of Playboy.
As for Hefner's kids, they all get to keep their jobs in the company, just as employees with zero ownership.
R.I.P. Hef ... and Playboy.