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Billy
Billy Corgan Files Lawsuit Against TNA & Dixie
- Thread starter DoubleJ13
- Start date
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- billy corgan dixie tna
Billy
Boy Wonder
Ain't kissing ass for no rep
David_TheMan
Banned
Corgan got worked by Dixie, I'm guessing its going to end with him getting a buyout of his interest in the company and becoming another debt holder.
Piff Huxtable
Delaney 2020,2024,2028...
Dixie played Corgan like Clay Davis played Stringer
why you playing those away games, Billy?
PWInsider.com has acquired the 19 page ruling issued by The Nashville
Chancery Court this afternoon denying TNA President Billy Corgan's
request for a temporary injunction against TNA, Dixie Carter, etc. and
resolving the temporary restraining order against them.
In the ruling, Chancellor Ellen Hobbs Lyle wrote that she denied Corgan's request for several reasons.
The Chancellor noted that in order for Corgan to be entitled to a
temporary injunction under Tennessee law, he has to show a substantial
likelihood of success on the merits of his claim, immediate and
irreparable harm, a balancing of the equity in the company in his favor
and that issuing the injunction would not be harmful to the public
interest.
However, the court noted that Corgan did not prove that TNA's defense
is without merit, that a default actually happened under the Pledge
Agreement between himself and Dixie Carter, that such a default would
rightfully mean that Corgan could gain control of Carter's voting rights
and that the amount owed and payable to Corgan has increased due to a
corporate transaction. So, since the court was not in 100% agreement
with Corgan's claims, they would not file the injunction against Carter
and the other defendants.
The Court also agreed with TNA's attorneys when they argued last week
that the Voting Rights Provision of the Pledge Agreement between Corgan
and Carter was "not implemented in accordance with TN Law" and the TN
LLC Operating Agreement, therefore it was "unenforceable" and Corgan
could not remove Dixie and the other Impact Venture management members.
On the subject of TNA parent company Impact Ventures being insolvent,
Hobbs noted, "there has not been demonstrated a substantial likelihood
of success on the merit because of the operative text of the Pledge
Agreement 'becomes insolvent' is ambiguous when applied to the facts of
record." Since the court rules on hard facts and hard facts alone, they
have to go by what the definition of insolvent is in the actual Pledge
Agreement. Since that is not spelled out in plain English with hard
context as to what would and would not be insolvent, the court will not
issue a ruling that the company is since there is no clear definition of
what the term means in conjunction with the Agreement.
It was noted in the response that the court "does not adopt" TNA's
argument that the potential money coming in from potential "purchasers
to buy the LLC or some of its assets refutes the facts and insolvency
standards" that Corgan presented. The court noted that because of the
unique facts of his case, the usual process that Corgan used and that
the court itself might use did not apply. Noting that all the parties
entered into the Pledge Agreement because TNA had financial issues, it
is therefore hard to define that the company had become insolvent,
because the company was already in "financial trouble and distress" when
Corgan stepped in, noting that even TNA CFO Dean Broadhead stated on
the record that without Corgan's help, "all would have been lost."
In her ruling. Hobbs stated, "Thus, the context of facts of the LLC's
financial distress at the time the insolvency default provision of the
Pledge Agreement was entered into by the parties in August 2016 creates
an ambiguity about the meaning of the text of the provision that a
default occurs under the Pledge Agreement 'if' the LLC 'becomes
insolvent.' "
So, the court is stating that Corgan cannot prove that TNA is
insolvent now because the company was in such bad shape that they
entered into the agreement with him and there's no way - at thus
juncture - to truly prove they are worse off now than they were in
August because of the wording of the agreement.
It was noted that it is "not clearly established on the record" that
the Defendants "have breached" their agreement with Corgan "by
withholding or concealing information." The court noted that Corgan has a
version of the facts and TNA has another and there is no clear proof at
this juncture which side is correct. The court noted that Corgan may
be able to win at trial if he provides the proper evidence, but at this
point, he cannot provide hard proof that they breached his agreement.
The court also ruled that the preliminary evidence filed on record
that does not prove that there has been an acquisition of TNA and it's
parent company by another party, so there is no current reason for
Corgan to be owed the additional Corporate Transaction fee (which is
believed, based on statements made in open court last week, to be an
additional $900,000).
Corgan is still free to go forward with his lawsuit. That is not dead.
TNA is also still required, contractually, to pay Corgan back his loan of $1.8 million on 11/1. They can still do that.
- PWInsider
Chancery Court this afternoon denying TNA President Billy Corgan's
request for a temporary injunction against TNA, Dixie Carter, etc. and
resolving the temporary restraining order against them.
In the ruling, Chancellor Ellen Hobbs Lyle wrote that she denied Corgan's request for several reasons.
The Chancellor noted that in order for Corgan to be entitled to a
temporary injunction under Tennessee law, he has to show a substantial
likelihood of success on the merits of his claim, immediate and
irreparable harm, a balancing of the equity in the company in his favor
and that issuing the injunction would not be harmful to the public
interest.
However, the court noted that Corgan did not prove that TNA's defense
is without merit, that a default actually happened under the Pledge
Agreement between himself and Dixie Carter, that such a default would
rightfully mean that Corgan could gain control of Carter's voting rights
and that the amount owed and payable to Corgan has increased due to a
corporate transaction. So, since the court was not in 100% agreement
with Corgan's claims, they would not file the injunction against Carter
and the other defendants.
The Court also agreed with TNA's attorneys when they argued last week
that the Voting Rights Provision of the Pledge Agreement between Corgan
and Carter was "not implemented in accordance with TN Law" and the TN
LLC Operating Agreement, therefore it was "unenforceable" and Corgan
could not remove Dixie and the other Impact Venture management members.
On the subject of TNA parent company Impact Ventures being insolvent,
Hobbs noted, "there has not been demonstrated a substantial likelihood
of success on the merit because of the operative text of the Pledge
Agreement 'becomes insolvent' is ambiguous when applied to the facts of
record." Since the court rules on hard facts and hard facts alone, they
have to go by what the definition of insolvent is in the actual Pledge
Agreement. Since that is not spelled out in plain English with hard
context as to what would and would not be insolvent, the court will not
issue a ruling that the company is since there is no clear definition of
what the term means in conjunction with the Agreement.
It was noted in the response that the court "does not adopt" TNA's
argument that the potential money coming in from potential "purchasers
to buy the LLC or some of its assets refutes the facts and insolvency
standards" that Corgan presented. The court noted that because of the
unique facts of his case, the usual process that Corgan used and that
the court itself might use did not apply. Noting that all the parties
entered into the Pledge Agreement because TNA had financial issues, it
is therefore hard to define that the company had become insolvent,
because the company was already in "financial trouble and distress" when
Corgan stepped in, noting that even TNA CFO Dean Broadhead stated on
the record that without Corgan's help, "all would have been lost."
In her ruling. Hobbs stated, "Thus, the context of facts of the LLC's
financial distress at the time the insolvency default provision of the
Pledge Agreement was entered into by the parties in August 2016 creates
an ambiguity about the meaning of the text of the provision that a
default occurs under the Pledge Agreement 'if' the LLC 'becomes
insolvent.' "
So, the court is stating that Corgan cannot prove that TNA is
insolvent now because the company was in such bad shape that they
entered into the agreement with him and there's no way - at thus
juncture - to truly prove they are worse off now than they were in
August because of the wording of the agreement.
It was noted that it is "not clearly established on the record" that
the Defendants "have breached" their agreement with Corgan "by
withholding or concealing information." The court noted that Corgan has a
version of the facts and TNA has another and there is no clear proof at
this juncture which side is correct. The court noted that Corgan may
be able to win at trial if he provides the proper evidence, but at this
point, he cannot provide hard proof that they breached his agreement.
The court also ruled that the preliminary evidence filed on record
that does not prove that there has been an acquisition of TNA and it's
parent company by another party, so there is no current reason for
Corgan to be owed the additional Corporate Transaction fee (which is
believed, based on statements made in open court last week, to be an
additional $900,000).
Corgan is still free to go forward with his lawsuit. That is not dead.
TNA is also still required, contractually, to pay Corgan back his loan of $1.8 million on 11/1. They can still do that.
- PWInsider
Neil McCauley
S.D.E.
The Rainmaker
Mr. Money in the Bank
This company can't die 
The Girl From Innsmouth
All Star
I bet the Bennetts are now wishing Maria didn't talk all out of pocket when she left the WWE.
Yep. They're stuck.
They could go back to Japan.
InstantKlassik
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