Freelance reporter David Bixenspan got his hands on the unsealed court documents in the Billy Corgan lawsuit against TNA which were published yesterday night.
The restraining order is what we initially thought it would be about, preventing TNA from continuing to either sell parts of the company or the whole company to anyone. It also prevents TNA from taking any action without Corgan’s approval since he’s also a minority stake owner and pumped quite a bit of his own personal money.
“Neither the Plaintiff nor the Defendants shall sell, assign, transfer and/or pledge Impact Ventures, its tape library and/or assets (except for transactions in the ordinary course of business) of Impact Ventures until further order of the Court,” the restraining order says. Corgan put in a $25,000 bond with this temporary restraining order.
In the lawsuit, Corgan is calming that TNA is insolvent (unable to pay debts owed), and Carter, as a majority owner, would have to give up her company shares to Corgan and then take over as a majority owner. Corgan loaned a lot of his money to Carter for the TNA business and that’s why he became TNA President and also a minority stake owner.
Corgan informed TNA on September 29 that he would be exercising his rights under the equity pledge agreement signed between the two on August 11. The power move by Corgan however did not materialize as Anthem Sports & Entertainment came to the rescue, giving Dixie Carter another loan to continue TNA operations and preventing Corgan from ousting Carter from her majority ownership position.
TNA denied that the company is insolvent and said that their assets are far more valuable than the debt they are in. This pretty much was the last communication between the parties before Corgan filed his lawsuit.
Corgan also requested documents from TNA which include information about Carter’s dealings with World Wrestling Entertainment this year and any other third party that showed interest in either taking over or purchasing certain TNA assets. Carter objected to this request on the grounds that Corgan already had access to them. During media interviews Corgan denied knowing that Carter was dealing with WWE although he admitted that if Vince McMahon decided to buy it, there’s nothing he can do to outbid him.
Attorneys representing Carter, TNA, and other defendants have handed over around 17,000 pages of documentation to Corgan’s attorneys for review.