A hearing took place in Nashville on Wednesday regarding the case of Billy Corgan vs. TNA.
The Tennessean’s Nate Rau provided live updates from the courtroom. Dixie Carter and her attorney Travis Parham were present and Corgan’s attorney Scott Sims was present on his behalf.
Here are the main points, thanks to Nate Rau:
– Corgan’s side is arguing that TNA misled him about their debts. He did not know just how far in the hole they were on company debts and he say that he’s been excluded from management decisions.
– There are financial details in the lawsuit that have been redacted so we don’t know exactly how much debt TNA has.
– Corgan’s side says that TNA has not been paying talent and TNA is blaming Corgan’s lawsuit. Corgan’s side is saying that is not true and that TNA is insolvent beyond doubt. Corgan’s side also claims that TNA has 52 percent more liabilities now than their June balance sheet and they argue that TNA’s debts are actually higher.
– Corgan’s side says that TNA has been in ICU at least 5 times this year and there was a reference to frantic cash calls being made after each TV taping.
– Regarding WWE negotiations, Corgan’s side says that WWE lowered their first offer and the offer is lower than Corgan’s estimate of TNA’s liabilities.
– They mentioned that TNA received $1.8 million from Anthem Media and that they have licensing rights to the TNA video library. I believe they have rights to stream TNA content on the Fight Network.
– Corgan’s side said that Dixie Carter emailed WWE to tell them that she would not sell to them until Corgan is out of the picture.
– TNA lawyer Travis Parham called Corgan’s lawsuit a scheme to take over the company and force Carter out. Parham also claims that the lawsuit has created a creditor crisis and has hurt TNA’s financial standing. Parham also claims that TNA anticipated cash flow problems and knew tha their new business model would be a challenge. Parham is arguing that TNA is not insolvent and that they are a valuable, well-known commodity. Dixie Carter retains 92.5% of shares while Anthem Media owns 2% and Aroluxe ownes 5%.
– Parham claimed that the tax lien from the state of Tennessee was an accounting mistake and a non-issue.
– Parham said that Corgan loaned TNA more money in August and that the loans were opportunistic to benefit himself.
– Parham is denying that financial details were hidden from Corgan and that Corgan is attempting to cause TNA do default on their loan so he could take over the company. He also claimed tha the contract between Corgan and Carter is illegal under Tennessee law so Carter can’t transfer her rights over to Corgan even if they were insolvent.
A ruling will come on Monday.