The main reason for the lawsuit by Corgan is that he is currently seeking Dixie Carter’s majority shares in the company (estimated at being 92.5% with Aroluxe Media owning 5% and Anthem Media owning the remaining 2.5%) over a breach of contract.
Corgan stated in the lawsuit that he initially invested into TNA back in June due to Impact Ventures (the parent company of TNA) being under “severe financial distress” and that by investing he was preventing “immediate foreclosure” to Aroluxe Media (the company’s current production provider). Carter structured a deal with Aroluxe back in April where TNA would pay back money owed through installments and if those payments were not made, she would lose control of the company. This exact scenario ended up taking place in June around the time of the Slammiversary PPV and led to Corgan beginning to invest.
Once again in July, Corgan invested money into the company to prevent Aroluxe from foreclosing on Carter and gaining control of TNA. Another scenario also played out in August, but by this point the agreement between TNA and Aroluxe had expired and Aroluxe was within the rights to foreclose “at any time.” According to the lawsuit, Corgan again stepped in and negotiated an “amended and restated loan agreement.” This was the same month that Corgan was appointed the new President of TNA and Carter was given the new title of Chairman and Chief Strategy Officer of Impact Ventures.
Corgan’s lawsuit argues that TNA is “continuing to flounder” and has been “taken to the brink of financial collapse” under Carter and other managers. It again reiterates that that TNA’s current secured creditors (Aroluxe and Anthem) “can foreclose at any time.” Corgan also revealed that he was essentially left in the dark regarding the company’s negotiations with Anthem Sports & Entertainment (the parent company of Fight Network) and that he was never made privy to any kind of conversation with WWE regarding the purchase of TNA’s video library dating back to 2002. Carter denies talks with WWE ever took place.
Anthem issued a press release last week stating publicly they were offering to “repay the loans made by Mr. Billy Corgan” and that they were “positioned to provide additional transitional assistance to the company.” Corgan is currently seeking some sort of a declaration from the court that he is now entitled to Carter’s 92.5% ownership, that he now retains her voting rights and has the ability to replace any current managers of his choosing. He is also seeking damages (to be determined by the court) for the breach of contract and is requesting an injunction preventing the defendants from making any kind of business decisions including selling any assests. A hearing is scheduled for tomorrow (October 26) regarding that temporary injunction in Nashville.
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