Lots of TNA News and Notes: WWE’s offer, talent not being paid, cash flow, loans

Oct 26, 2016 - by Steve Gerweck

Via Mumbai Kitchen:

Most interesting tweets from Nate Rau:

TNA is not paying talent. Company blames lawsuit. Sims says thats not true. TNA is insolvent beyond doubt on cash flow test.

Sims referencing WWE negotiations now. He says WWE lowered its first offer. And current offer counts non-compete clauses.

Sims says WWE offer is lower than Corgan’s estimate of TNA liabilities.

Just because WWE and others have offered investment in TNA does not prove company is not insolvent

Sims just seemed to slip and say $1.8M is owed to Corgan on one note.

Sims just said Carter made offer for Corgan to buy her out. Everyone involved is trying to make a deal Sims says.

Sims says Dixie Carter emailed WWE to say she won’t sell to them until Billy is out.

TNA’s side now…

TNA attorney Travis Parham is up now. He calls lawsuit a scheme by Corgan to take over the company and force out Carter.

TNA has good will, notoriety, merchandising, licensing and is an international brand.

Parham says TNA is a valuable, well known commodity. Carter owns 92.5 pct, Anthem owns 2 pct and Aroluxe owns 5 pct.

Parham said TNA anticipated short term cash flow problems and knew its new business model would be a challenge.

Corgan lent more money in July and had right to convert loan to 12.5 pct interest. Parham is arguing TNA is not insolvent.

He says Corgan wanted 22.5 pct in company after third loan and insisted on pledge agreement.

Parham called Corgan’s loan a “heads I win, tails you lose” deal. He says Corgan has resisted efforts to repay his loan.

Corgan doesn’t want to be refinanced and paid off, because he wants 92.5 pct in company, Parham said.

Parham said Corgan offered to buy company the day his loan agreement expired. That would have included paying off Aroluxe.

That deal would have given him 52 percent of TNA. “he’s now saying company is worth nothing,”

Parham said Corgan tried to buy TNA last month, then went litigation path when deal fell through.

Parham: Corgan did nothing to set up necessary financing for Sept. production.

Parham said the contract between Corgan and Carter is illegal under TN law. So Carter cant transfer her mgr rights even if TNA is insolvent.

Parham said cash flow is a small part of the story. He says people want to buy TNA because it is valuable.

Source: tennessean.com

Leave a Reply