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.
New court documents were released on Wednesday and in those documents, Corgan is alleging that TNA hid how much they were in debt in order to get him to invest money into the company. Corgan states that on 6/10/16 he was not told that Aroluxe and Anthem Media were granted seniority as far as TNA paying its debts so that means that he would have been the third party to be repaid if TNA had repaid their debts. He believes he was misled by TNA over what they owed to the other parties prior to his investment that kept them up and running. Corgan later learned how much debt they were in during the month of September.
“I did not know that Impact Venture’s debts were that high,” Corgan said. “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, a position he took on in August after his third funding/loan.
TNA had been planning on taping TV from 11/1 through 11/3 in Orlando, Florida but the company made the decision to postpone those tapings due to 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.”
Corgan states 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.
TNA’s attorney sent a letter to Corgan in late September with a term sheet that would have Corgan give a “full release of all claims.”
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.”