The Billy Corgan-TNA saga is getting uglier by the day. We noted yesterday that Corgan’s unsealed lawsuit claimed that Dixie Carter kept details about talks with WWE from him and he learned about those talks through the media. Corgan’s investment also prevented TNA from being foreclosed by Aroluxe so he essentially saved the company.
According to new court documents released today, Corgan is alleging that TNA hid how deep TNA was in debt in order to get him to invest money. He also states that on 6/10/16 (this is when he made his first investment), that he was not told that Aroluxe and Anthem Media were granted seniority as far as TNA paying it’s debts so that means that he would have been the third party to be repaid if TNA had repaid their debts. He says that he was misled by TNA over what they owed to other parties before he made his investment to keep them afloat. Corgan would later learn about how much debt the company had in September.
Corgan claims, “I did not know that Impact Venture’s debts were that high. I never would have agreed to invest additional capital in Impact Ventures had I known the company’s debts were that high.” He is also alleging that he was prevented from doing his job as President of the company, a position he took on in August after his third funding/loan.
Another interesting note is that that TNA had plans to tape TV from Matt Hardy’s compound but they made the decision to postpone that taping because of “lack of funds.” Corgan states, “Impact Ventures also continues to not pay its talent, except now defendants are blaming me and the temporary restraining order in this case for lack of payment.”
The document also stated that, Aroluxe’s Jason Brown “has undertaken the duties of managing the day-to-day operations of the company” and that he understands that Brown has been “planning events for 2017 and negotiating contracts with talent.” Corgan says that he has been excluded from these duties despite being President of the company.
TNA’s attorney sent a letter to Corgan on 9/30 and his attorney with a term sheet that would have Corgan give a “full release of all claims.” That sounds like a settlement offer but I’m not 100% sure but it falls in line with the recent offer made by Anthem Media last week to pay off the debt owed to Corgan so he could drop the suit. Corgan wrote, “I will not agree to provide Impact Ventures with a ‘full release’ as a condition to the repayment of my loan proceeds. I am not required under any of the loan documents to provide such a release in return for full payment. I also believe that I have claims against Impact Ventures and the other defendants that are separate and apart from the claims that I have currently asserted herien, and I am not willing to waive or release those claims.”
As noted on Tuesday, Corgan’s lawsuit states that he wants Dixie Carter’s majority shares of the company.