Billy Corgan Reaches Settlement with Impact Ventures
Entertainment can be a chaotic business, especially when the president of a company sues the organization for which he works.
According to 411 Media, Billy Corgan, the former president of TNA Wrestling and frontman for The Smashing Pumpkins, recently settled a lawsuit with Impact Ventures, TNA’s parent company. The agreement puts to rest a dispute regarding the organization’s failure to repay loans Corgan provided to the majority stakeholder.
Background of the lawsuit
The Tennessean provided a rundown of the lawsuit, in which Corgan claimed that if TNA failed to repay him, he would obtain TNA chairwoman Dixie Carter’s voting rights on the board of directors. This would prevent the company from making a decision without Corgan’s involvement.
However, Chancellor Ellen Hobbs Lyle ruled that the loan agreement between Carter and Corgan was non-binding under Tennessee law. Therefore, The Smashing Pumpkins frontman was not able to legally take control of TNA. In redacted legal filings, Corgan maintained that TNA did not have the financial resources to pay off its debts, and owed millions to creditors and investors, as well as the State of Tennessee. The Tennessean noted Hobbs Lyle rejected Corgan’s motion for an injunction on the grounds that it was ambiguous and illegal.
“The (relevant section) of the pledge agreement, the court concludes, was not implemented in accordance with Tennessee law and the LLC operating agreement, and Section 6 is, therefore, unenforceable to remove the defendant LLC managers,” said Hobbs Lyle, as quoted by The Tennessean.
Do you have any questions? Would you like to discuss the matter further? If so, please contact me, Shane Birnbaum, at 201-806-3364.