Friday, October 21, 2016
Billy Corgan Says TNA Is Insolvent, What Restraining Order Prevents TNA From Doing
One of the documents unsealed was Corgan's request for a temporary restraining order against the defendants, which was approved and is still active through the hearing scheduled for 10/26 in Nashville, TN before the Chancery Court.
The request included the following passage:
"As demonstrated in the memorandum of law filed herewith, plaintiff is likely to prevail on the merits of its claims because Impact Ventures LLC is insolvent, and, as a result, plaintiff is entitled to exercise controlling voting rights in the company pursuant to an equity pledge agreement between the plaintiff, Ms. Salinas [Note from Mike: Dixie Carter] and Impact Ventures. Furthermore, if not enjoined, defendants' conduct will cause irreparable hard to Plaintiff."
The Temporary restraining order was approved on 10/13 (requiring Corgan to file a $25,000 bond) with Chancellor Ellen Hobbes Lyle writing, "Considering the motion and the verified complaint, in particular, the verified allegations concerning the insolvency of Impact Ventures at paragraphs 30-35 and Plaintiff's authority and rights alleged in paragraphs 21-29, together with all the other papers and pleadings filed in this action, the Court finds that the Plaintiff's rights are being or will be violated by Defendants, and that Plaintiff will suffer immediate and irreparable injury, loss, or harm before notice can be served and a hearing held."
The order currently includes the following:
*Impact Ventures LLC is not allowed to take any action without the consent of the Plaintiff (Billy Corgan) obtained in accordance with the process set forth in the Operating Agreement of Impact Ventures and/or applicable law.
*TNA Entertainment LLC is not allowed to take any action without the consent of the Plaintiff (Billy Corgan) obtained in accordance with the process set forth in the Operating Agreement of TNA Entertainment and/or applicable law.
*Neither side shall "sell, assign, transfer and/or pledge Impact Ventures, its tape library and/or asssets (except for transactions in the ordinary course of business) of Impact Ventures until further order of the Court.
In layman's terms, this means that TNA cannot create any new business deals, unless Corgans signs off on them, until the restraining order has been removed. Technically, they shouldn't even be able to sign any talents to a new contract should one expire, unless Corgan gives the approval.
It is also important to note that neither side can sell their ownership in the company or even license the tape library to a third party unless the court signs off on it, putting TNA (unless they settle with Corgan) into a pretty hard position as this process winds its way through the court system. However, it would also prevent Corgan from selling his claim to TNA to say, WWE, for example.
Given that Corgan is attempting to get an Injunction when all parties go to court on 10/26, TNA could be in for a really long haul with this situation. Given what was stated in just the restraining order request and the court's approval of the TRO, one can only imagine what might be within the lawsuit itself.