Attorneys representing Billy Corgan and TNA president Dixie Carter presented their cases to Chancellor Ellen Hobbs Lyle on Wednesday in Nashville, Tennessee. Court adjourned with Hobbs Lyle stating that she will make her ruling on the case on Monday.
The following the highlights of the tweets written by The Tennessean reporter Nate Rau, who attended the hearing on Wednesday. For more of Rau’s tweets from the courtroom, visit Twitter.com/tnnaterau.
Corgan’s attorney Scott Sims argued that his client and Carter entered into a clause that included an insolvency clause. Sims claimed TNA misled Corgan when it came to the company’s debt, and also failed to include him in management decisions despite naming him president of the company. Sims also argued that the company is insolvent.
TNA’s attorney Travis Parham noted that Carter owns 92.5 percent of the company, Aroluxe owns five percent, and Anthem Sports & Entertainment own two percent. He confirmed that Corgan provided three loans that could be transferred into equity. Parham argued that Corgan’s loans were opportunistic to benefit himself. Parham claimed the third loan carried a 200 percent rate of return that would make a loanshark blush, and claims that Corgan has rejected the company’s attempts to pay him back.
Parham also denied that financial details were hidden from Corgan, whom he accused of attempting to cause TNA to default on its own loan. Parham argued that the contract that Corgan and Carter entered into is not legal under Tennessee law. He also labeled the tax lien against the company as an accounting mistake and called it a non-issue. A lawyer representing Anthem Sports & Entertainment reaffirmed that they are willing to pay off Corgan’s loan minus any transaction premium.
Powell’s POV: Two things stood out as key factors for the judge to determine. First, the question of whether Parham’s claims that the contract entered into by Corgan and Carter is not legal in Tennessee. Second, is how the chancellor defines insolvent in this case. It’s going to be a long weekend for both sides as they await the chancellor’s ruling. I can’t encourage you enough to check out Rau’s Twitter feed for additional details.