Billy Corgan's Lawsuit Against TNA Is Apparently Still Moving Forward

As noted, Chancellor Ellen Hobbs Lyle today ruled against Billy Corgan's request for a temporary injunction against TNA, which would have prevented the company from making major business decisions or sell the company without Corgan being involved in the decision. TNA can proceed to run the company without Corgan being involved.

Corgan loan repayment of $1.8 million is due tomorrow, Tuesday, November 1st. Corgan had made three loans to the company, with the third one having a provision that would have granted him Carter's 92.5% voting rights. The judge ruled that the provision was unenforceable. If TNA is unable to repay the loan by tomorrow, Corgan could take action or he could turn that debt into a 36% stake in the company. As noted, Anthem Sports & Entertainment Corp., the parent company of the Fight Network, had previously agreed to repay Corgan, however were unwilling to pay a 50% corporate transaction fee, which would have been in the neighborhood of $900,000. However, the court ruled that Corgan is not owed the transaction fee.

Corgan's attorney had also tried to argue that the company was insolvent, however the judge rejected that due to "the ambiguous nature of the insolvency."

As noted, the ruling was just over Corgan's motion for a temporary injunction, and not his lawsuit. It appears as if the lawsuit will proceed forward according to Corgan's attorney, Scott Simms.

"Mr. Corgan understands that temporary injunctive relief is an extraordinary remedy and, due to the nature of the proceedings, he did not have full access to information in the defendants' possession that bears on the issues in this case," Sims said. "Mr. Corgan looks forward to the opportunity to conduct full discovery into these matters and present his case in its entirety to the Court at a later date."

Source: The Tennessean


Back To Top