TNA, Corgan Go To Court; Ruling Expected Monday

John MoorehouseOctober 26, 2016, 9:05 pm

Attorneys for Billy Corgan and TNA argued on Wednesday over an injunction that, if granted, would give Corgan control of the company.

The Smashing Pumpkins frontman, Corgan is arguing the company is insolvent and that Corgan was misled about the total debts of the company. TNA, in response, accused Corgan of setting up a very one-sided loan agreement earlier this year and that current offers from would-be buyers refuse the notion the company is insolvent.

Chancellor Hobbs Lyle will rule on this matter Monday.

TNA currently faces multiple lawsuits, including the one from Corgan, as well as a lien for unpaid tax issued by the state of Tennessee.

Nate Rau, music business and investigations reporter for The Tennessean, was on hand at the hearing and posted live updates on Twitter.

Scott Sims, Billy Corgan's attorney, argued that Corgan financially bailed out TNA on three separate occasions but that the promotion did not live up to its end. Sims also stated that TNA debts had risen by 52 percent since June.

Anthem, a minority owner in TNA that currently owns licensing rights to the promotion's video library, has made an offer to buy out Corgan and take over the company.

According to Rau's tweets, Sims argued that Corgan did not know the degree of the financial peril facing the company when he provided cash.

TNA is not paying talent. Company blames lawsuit. Sims says thats not true. TNA is insolvent beyond doubt on cash flow test.

— Nate Rau (@tnnaterau) October 26, 2016

TNA has 52 pct more liabilities now than June balance sheet, Sims says. And he argues total debts are actually higher.

— Nate Rau (@tnnaterau) October 26, 2016

Sims says mgmt has put TNA in ICU at least 5 times this year. Hes referencing frantic cash calls they make after each taping.

— Nate Rau (@tnnaterau) October 26, 2016

Sims also noted that the amount of tax TNA owes the state of Tennessee, which led to the state issuing a lien against the company, remains known. He also noted that WWE's offer to buy the company, which since has lowered from its first offer, is lower than what Corgan estimates that TNA currently owes.

Travis Parham, the attorney representing TNA, countered by claiming, according to Rau, that the lawsuit was “a scheme by Corgan to take over the company and force out Carter.”

Parham noted that Corgan made three loans to the company, the last in August, but that he had steep terms for that third loan:

He says Corgan wanted 22.5 pct in company after third loan and insisted on pledge agreement.

— Nate Rau (@tnnaterau) October 26, 2016

Parham called that deal a 200 pct rate of return that would make a loan shark blush.

— Nate Rau (@tnnaterau) October 26, 2016

Parham also offered hard data on the ownership percentages of TNA:

Parham says TNA is a valuable, well known commodity. Carter owns 92.5 pct, Anthem owns 2 pct and Aroluxe owns 5 pct.

— Nate Rau (@tnnaterau) October 26, 2016

Parham said Corgan offered to buy company the day his loan agreement expired. That would have included paying off Aroluxe.

— Nate Rau (@tnnaterau) October 26, 2016

Denying that financial details had been concealed from Corgan, Parham went on to accuse Corgan of trying to make the company default on its own loan. He also claimed Corgan filed the suit only after he attempted to buy the company in September.