Here is the latest on the lawsuit from Billy Corgan against TNA Entertainment LLC (dba Impact Ventures, LLC DBA TNA Entertainment, LLC), Dixie Carter Salinas, Serg Salinas, and Dean Broadhead.
The redacted version of Corgan’s lawsuit was released today by the Chancery Court in Nashville. The lawsuit claims that TNA is in serious financial distress and he invested to help the company continue and prevent them from going into immediate foreclosure to Aroluxe Media. Apparently, the terms stated that Aroluxe would take over the company if Dixie Carter could not pay back the money they invested.
Corgan believes that Dixie Carter’s shares in the company are at 92.5% and Aroluxe owns 5% while Anthem Sports (parent company of The Fight Network) own 2.5%. Corgan noted (and this was reported by The Wrestling Observer newsletter) that he put more money into the company again in July and August to keep the company going. The August investment included a “new second priority secured convertible priority note” and the agreement included Corgan being appointed as the new President of TNA where he would handle day-to-day operations. The lawsuit also noted that Carter agreed to enter into a “100% equity pledge agreement” that would allow him to “exercise all voting or consensual powers pertaining to collateral.” Essentially, he gets to take over the company if they default on repayment to him.
The lawsuit claims that TNA/Impact Ventures, LLC is insolvent and the company has not provided Corgan with balance sheets and that their debt is more than their assets. He is asking for Carter’s 92.5% stake in the company.
Corgan is also looking to get all documents related to any talks that may have occurred with WWE. Apparently, he heard of the WWE and Anthem Sports/Fight Network stories online but none of this was disclosed to him. The lawsuit says, “This recent conduct is consistent with the way Mrs. Salinas and the other members have dealt with the Plaintiff since the inception of his involvement with Impact Ventures. They have failed to keep Plaintiff apprised of matters of great significance to the company; they have routinely misled plaintiff as to the company’s finances, operations and future prospects; they have failed to provide the plaintiff with information necessary to discharge his duties as President to manage the day-to-day operations of the business; and they have regularly interfered with, subverted or ignored plaintiff’s authority to manage affairs in the company.”
Corgan said that he did not hear from anyone after 10/12 when he told Carter that he was going to exercise his right (per his deal) that he would take over the majority stake of the company. The suit states, “The company is continuing to flounder and has been taken to the brink of financial collapse under Ms. Salinas and the other managers. The company’s secured creditors, including Aroluxe and Anthem, can foreclose at any time.”
There is a hearing scheduled for tomorrow at 1pm central.
Below is the updated case summary: