wrestling / News

UPDATED: Billy Corgan Says TNA is Unable to Pay Its Debts – Details on Restraining Order

October 21, 2016 | Posted by Jeremy Thomas

UPDATED: PWInsider has added more details as to what the restraining order Billy Corgan has been granted against TNA involves. According to the site, the order denies TNA and Impact Ventures the ability 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.” It also means that neither side can “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 other words, TNA is unable to create any sort of new deal until Corgan agrees to them or the restraining order is removed. That includes the inability to sign new talent or renew contracts, and neither side can license the tape library, sell their stake in the company or other assets.

ORIGINAL: PWInsider has obtained the restraining order that is now unsealed in regard to Billy Corgan’s lawsuit against TNA, Impact Ventures LLC, Dixie Carter, Serg Salinas and Dean Broadhead. The restraining order was approved by the court and is active through the next hearting, which is October 26th.

The restraining order request notes that TNA is “insolvent,” or unable to pay off its debts. The passage reads, “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 [Carter] and Impact Ventures. Furthermore, if not enjoined, defendants’ conduct will cause irreparable harm to Plaintiff.”

The lawsuit (with financial details redacted) will be unsealed on October 25th, the day before the next hearing.