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Several documents unsealed in Billy Corgan's lawsuit against TNA


Several documents regarding Billy Corgan's lawsuit against Impact Ventures LLC, Dixie Carter Salinas, Serg Salinas and CFO Dean Broadhead were unsealed today in Davidson County Chancery Court.

A new version of the actual lawsuit is expected to be unsealed on Tuesday.

The key note is that Corgan was granted a restraining order last week, key because that means Chancellor Ellen Hobbes Lyle believed his case against TNA is likely to prevail as that would be the reason to grant such an order. The retraining order means TNA is not allowed to take any action regarding selling, assigning assets such as the tape library until the court allows them.

This prevents either a sale of the tape library to The Fight Network or WWE, as well as a sale of the company, or any stock in the company. That explains why The Fight Network had to loan TNA the money to keep going as opposed to putting money in exchange for points in the company in the unusual announcement this past week.

The money appears to be put in to make the company solvent for now, as Corgan claimed they were not solvent, and based on his agreement with Carter if the company was not solvent, then he would be able to make all the key decisions. Carter Salinas was barred from what they had done before which is sell points in the company in exchange for cash, or sell more of the tape library in exchange for cash.

The Fight Network and Carter Salinas are attempting to buy Corgan's stock in the company back, thus refund his money, in exchange for him going away and dropping what would be an embarrassing lawsuit.

Corgan would also be banned right now from selling his points in the company to an outsider, but if he drops the case he could sell his points back to them.

The fact the suit is continuing means Corgan has not as yet agreed to take the money and go away.

Corgan claimed TNA was insolvent, which means that their debt is greater than their assets. The debt is probably in the $5 million or more range. Of what we do know, the debut would be $4 million but there are likely other creditors unknown at this time.

Based on the agreement when Corgan put money in, if the company was insolvent he would be able to take over and fire and hire people. The company and Carter, claimed they were not insolvent but produced no documentation to support that.

However, TNA has handed over 17,000 pages of documentation to Corgan and his attorneys, basically to bog him down, and TNA is hopeful the deal to buy Corgan out gets completed before the lawsuit gets unsealed.

Bruce Prichard, who worked for NWA for several years, claimed he had financial issues because TNA withheld tax money from his checks but never paid the government the withholding, and thus the government came after him for not paying his taxes. He said the figure was about $10,000 but all ended up being straightened out.