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Detailed Notes From Today’s Billy Corgan vs. TNA Hearing — Corgan’s Lawyer Says Dixie Told WWE She Won’t Sell To Them Until Corgan Is Out

October 26, 2016 | Posted by Larry Csonka

– Mate Rau, a reporter for The Tennessean, was in attendance for today’s Billy Corgan vs. TNA hearing. Here are the details from today’s hearing, including: Corgan’s side claming TNA in insolvent, that they misled Corgan over financials, the lawyers agreeing not to disclose redacted financial details, another claim that TNA Is not paying talent, that they owe $1.8 million to Anthem (they hold the licensing rights to the TNA library) and that WWE’s offer is lower that Corgan’s estimate in regards to TNA’s liabilities. The TNA side says that things were fine before Corgan ‘s action caused a creditor crisis.

Rau’s full updates are below, but here are a few key highlights:
* Billy Corgan’s lawyer claims Corgan bailed out TNA three times by loaning them money in an agreement that included an insolvency clause, but that TNA misled him about the levels of debt they have, have not involved him in decision-making despite making him President, and that they believe TNA is already insolvent, which means Corgan should take over Dixie Carter’s shares in the company, giving him 92.5% ownership.
* Corgan’s lawyer said that TNA is not paying its bills and is not paying talent as evidence of the company being insolvent.
* Corgan’s lawyer implied that TNA is hiding something.
* Corgan’s lawyer confirmed that WWE made an offer, then lowered it; says the WWE offer is lower than what Corgan estimates to be TNA’s liabilities.
* Despite an agreement to keep the financials redacted, Corgan’s lawyer slipped and said Corgan is owed $1.8 million on one of the loan notes from Anthem, which owns TNA’s video licensing rights.
* Corgan’s lawyer said Dixie Carter told WWE that she won’t sell to them until Corgan is out of the picture.
* Corgan’s lawyer also said Dixie made an offer for Corgan to buy her out, making the point that everyone is trying to make a deal.
* Dixie’s lawyer blames the Corgan lawsuit as a reason why they are unable to pay their bills and pay talent.
* Dixie’s lawyer says this is all a scheme by Corgan to take over the company and force her out and that the lawsuit has hurt TNA’s financial situation.
* Dixie’s lawyer claimed TNA’s current ownership situation as Dixie owning 92.5%, Anthem owning 2%, and Aroluxe owning 5%.
* Dixie’s lawyer said TNA is not insolvent and that Corgan had the right to convert his loan note to 12.5% ownership in July but didn’t do it.
* He goes on to say that on the third loan (given in August), Corgan wanted 22.5% of the company and put on “loan shark” type terms such as 6% interest and a 50% equity kicker and said it was a “heads I win, tails you lose” type of deal.
* He says Corgan’s endgame here is to get 92.5% of the company without having to fully pay for it via making TNA default on his loan and that is why he has not wanted to be paid back on his loans.
* He says Corgan has been trying to buy the company, and when the deal fell through, he pursued the current legal strategy, arguing that the company must have some value if Corgan has repeatedly tried to buy it, and why would Corgan want to buy a company that he claims is insolvent and a mess.
* He goes on to argue that the entire agreement between Dixie and Corgan is illegal under Tennessee law and thus not valid, so Carter can’t transfer her manager rights to him even if TNA IS insolvent. Again implies that Corgan is a predatory lender.
* Anthem’s attorney says they are willing to pay back Corgan’s loans.
* Court has adjourned, with a decision coming on Monday.

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