As noted, there was a court hearing on Wednesday afternoon between Billy Corgan and TNA at the Chancery Court in Nashville, TN. Corgan filed the lawsuit against TNA Entertainment LLC (dba Impact Ventures, LLC DBA TNA Entertainment, LLC), Dixie Carter Salinas, Serg Salinas, and Dean Broadhead two week’s ago. Nate Rau of The Tennessean was the hearing and provided details on what took place.
Corgan’s attorney described TNA as insolvent, unable to pay its bills and to negotiate with its investors. As noted, Corgan is suing TNA and seeking an injunction that would give him control of the company. TNA has argued that it has offered to sell which proves it is not insolvent. TNA owes money to contractors, and at least two of them have become partners by turning debt into equity in the company. Corgan needs to prove that TNA is insolvent, which would kick in a clause that would give him control of TNA’s operations. Corgan’s attorney, Scott Sims, said that TNA fails the “cash flow” test and the company’s debts have risen 52 percent since June, and it is facing more cash problems over the next nine months.
Anthem owns the licensing rights to TNA’s video library, and they have an existing offer on the table to buy out Corgan and take over TNA. Chancellor Ellen Hobbs Lyle pressed Sims on TNA’s insolvency and asked if possibility selling the company proves it would be solvent. Sims replied no and argued that TNA didn’t disclose the full financial details to list all of its liabilities including its tax bills. As noted Tennessee issued a tax lien on TNA earlier this year. Sims said that all of the partners in TNA have been talking and at one point Carter even asked Corgan to buy her out of the company.
The judge announced that a ruling would come this Monday.
We will be adding more to this story shortly.