Could we be getting near the final stages of TNA? The answer is no, if we have not learned anything from this company is that it will survive but that doesn’t change the fact that things are a mess. The company has long been rumored to be experiencing financial troubles, now those background whispers have grown to loud out front lawsuits.
The most notable of legal situation that TNA is dealing comes from the rift between Dixie Carter and President Billy Corgan. When Corgan came to the company there was a lot of hope out in the wrestling world that he could help right the ship. If you believe what is being accused, TNA just may have become one big headache for the Smashing Pumpkins front man.
To get everyone caught who may not be familiar with this situation, I will break it down for you. TNA needed some money to keep things going, Billy loaned the company the money on the condition he could get Dixie’s controlling share of the company. The basis of Corgan’s lawsuit is that the agreement has not been honored.
On October 12th, Billy notified Impact Ventures that he was exercising his right as the holder of Dixie’s shares to remove all current managers at Impact and replace them with his own handpicked team. At this point Billy says that he has not been granted that control of the organization. The original court filings were sealed and Corgan had redacted a few versions of his lawsuit and records have been unsealed by Chancellor Ellen Hobbs Lyle.
Corgan claims that the company cannot pay its bills and debt outweighs their assets. “Impact Ventures is insolvent,” Corgan stated in his filing. “Its liabilities exceed the value of its assets, and Impact Ventures is unable to pay its debts as they come due in the ordinary course of business.”
Now TNA has a different view of the situation and their lawyers have characterized Corgan as a “Predatory Lender”. The legal team of Impact Ventures also contend that the company is not as in bad shape as Billy is saying and he just wants to take over. Anthem who is the parent company of The Fight Network who also owns a percentage has offered to pay off Impact’s debt. This would take Billy out of the picture all together while Dixie is looking to settle with other people the company owes along with possibly trying to sell her stake.
After Impact settles the Corgan lawsuit they still must deal with the State of Tennessee. The Department of Revenue has issued a tax lien against the company for unpaid business taxes. There is also pending litigation in the State of New York by American Express Travel Related Service Company. Per documents filed with the Supreme Court of New York, TNA Entertainment owes American Express $269,049.50 for unpaid travel expenses on their corporate card. Needless to TNA has a lot going on and will be spending a lot time in court. Hopefully for the talent it all gets resolved soon.
Written By
Keith B. Holt
Follow on Twitter @Kholtjr
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