Corgan loses legal effort to take over TNA
Posted: Oct 31st, '16, 13:21
Source: tennessean.com
Chancellor Ellen Hobbs Lyle on Monday rejected Billy Corgan's request to grant the Smashing Pumpkins frontman control of Nashville-based wrestling company TNA.
Corgan sued TNA, chairwoman Dixie Carter and other executives seeking to gain her voting rights on the board of directors and wrestle away control of the company.
Corgan has given TNA three loans in recent months, the last one came with strings attached that would allow him to take Carter's voting rights if the company became insolvent. Corgan, represented by Nashville attorney Scott Sims, argued the company is insolvent because it owes significantly more money to creditors, contractors and in business taxes, than it is bringing in.
TNA attorney Travis Parham argued that Corgan's lawsuit was part of an elaborate scheme to take control of the company. Parham said TNA had offers to sell the company and to repay Corgan with interest.
Temporary injunctions such as the one sought by Corgan are rare and legally difficult to attain, and Hobbs Lyle said in her ruling that he did not meet that burden of proof. Corgan is due to be repaid by Nov. 1, putting the case on a fast track.
Brentwood-based Aroluxe Marketing, which is TNA's production company and partner, could be positioned to take over the wrestling promotion that has been home to stars such as Hulk Hogan, Kurt Angle, Matt Hardy and Jeff Hardy.
Chancellor Ellen Hobbs Lyle on Monday rejected Billy Corgan's request to grant the Smashing Pumpkins frontman control of Nashville-based wrestling company TNA.
Corgan sued TNA, chairwoman Dixie Carter and other executives seeking to gain her voting rights on the board of directors and wrestle away control of the company.
Corgan has given TNA three loans in recent months, the last one came with strings attached that would allow him to take Carter's voting rights if the company became insolvent. Corgan, represented by Nashville attorney Scott Sims, argued the company is insolvent because it owes significantly more money to creditors, contractors and in business taxes, than it is bringing in.
TNA attorney Travis Parham argued that Corgan's lawsuit was part of an elaborate scheme to take control of the company. Parham said TNA had offers to sell the company and to repay Corgan with interest.
Temporary injunctions such as the one sought by Corgan are rare and legally difficult to attain, and Hobbs Lyle said in her ruling that he did not meet that burden of proof. Corgan is due to be repaid by Nov. 1, putting the case on a fast track.
Brentwood-based Aroluxe Marketing, which is TNA's production company and partner, could be positioned to take over the wrestling promotion that has been home to stars such as Hulk Hogan, Kurt Angle, Matt Hardy and Jeff Hardy.