Read on for what happened in the initial hearing regarding Billy Corgan's lawsuit against TNA.
Billy Corgan stated TNA's debts are about ten times what their assets are worth, which would make them far beyond insolvent.
Corgan also alleges the defendants misled him on how bad the company's debts were in order to get him to agree to his loans. Corgan alleges he never would have invested in TNA if he knew how much money they owed.
Further, Corgan claims he was unaware Aroluxe and Fight Network were to be paid off ahead of him should TNA recover its debts.
Corgan says he was told TNA was to be sold imminently ahead of his third loan in August. There was definitely talk a sale was coming soon, but that had been said for a while now.
Corgan further alleges he has been prevented from doing his duties as president, with Aroluxe's Jason Brown taking over his roles. Corgan states Brown is planning events for 2017 and negotiating talent contracts.
Corgan alleges TV tapings set for November 1 to 3 have been postponed due to lack of funds. These would be the Total Nonstop Deletion tapings at the Hardy compound. TNA sources insist the postponement is due to logistical issues for the bookings of the shows.
Billy says TNA is continuing to not pay its talents.
Corgan insists he can convert his owed money into a big ownership stake in the company, but TNA won't give him relevant information to do so.
TNA responded to Corgan's claims:
TNA insinuates Corgan used his loan to Dixie as a way to strong-arm his way into the presidency, and once Fight Network emerged to potentially keep TNA afloat without him, Corgan pulled a power play to try to become owner.
TNA says that their agreement with Corgan will end should Fight Network pay the money he loaned TNA, so Corgan's doing this in order to maintain control.
They also insinuate he's trying to get the company for cheaper than it's worth by means of this lawsuit.
TNA says in July 2015, the plan was for Aroluxe to bring in outside investors and have Corgan on as a minority owner.
TNA alleges Corgan did not give them part of a promised loan as leverage to become president.
They also claim Corgan more or less held TNA ransom and Dixie signed off on a loan that wasn't in her favor due to their financial problems.
TNA acknowledges Corgan could have turned his loan into a minority ownership of the company.
TNA says Corgan more or less manipulated Dixie into not letting Aroluxe's investors take over so he could become majority owner instead.
According to TNA, outside company (almost definitely WWE) offered to buy TNA at about the same price Corgan wanted to buy TNA for.
TNA disputes the idea of Corgan being prevented from doing his job. Rather, they say it was due to him intentionally staying away from senior management.
They also dispute Corgan not being allowed access to important financial information.
TNA holds Corgan is trying to prevent Fight Network from repaying the money he's owed in order to try to take control of TNA.
- Corgan responds to this response:
He basically buried TNA's top executives for the state of TNA.
He also says TNA denied talking to WWE, but TNA's chief financial officer had sent the company materials they had requested.
Dixie stated she intended to pay Corgan's loan back before selling the company to WWE after they were concerned with the issue.
More or less says "of course TNA is insolvent. Look at all these other lawsuits. Also they owe people as high up as Dixie back pay. Also checks bounded back in September and they owe a lot of people money. Also a vendor called Seismic Sound has threatened collection actions because they're unable to pay (this could be Dale Oliver)."
WWE put forth a non-formal offer to buy TNA before Slammiversary. They made a lower offer months later.
Billy insinuates WWE was kept in the dark about how much TNA owed, because they could have shied away if they knew how much debt TNA was in.
Fight Network is looking to buy a large majority stake, with Aroluxe's Jason Brown being signed as CEO for three years.
- Notes from the day in court:
Corgan's lawyer argued TNA has a lot more liabilities and debts than in June.
Basically Corgan's side says they're frantic to secure funding for every taping.
Also Corgan's side says WWE's offer is lower than what Corgan thinks TNA is worth.
... and Dixie made an offer to Corgan for him to buy her out.
TNA's side says Corgan was a loan shark and really trying to screw the company so he can take ownership.
TNA also says Corgan's contract to get Dixie's stake is illegal, and thus nonbinding.
TNA also says the tax lien against them is an accounting mistake.
TNA says there are suitors to buy it.
- A ruling will be issued Monday.
- There's footage of TNA's lawyer and Billy Corgan's lawyer entering the hearing.
- Billy Corgan was not present at the hearing, but Dixie Carter and several important TNA names were.
- TNA's attorney more or less said Corgan's responsible for their current financial crisis, going from heavily valuing the company when he wanted to buy it to now saying it's worth nothing.
More wrestling coming up.
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