The financial and legal problems for TNA Wrestling continue to magnify with each passing day.
While Billy Corgan's lawsuit against TNA , its subsidiary and its owners will not be unsealed until this coming week, PWInsider did obtain the original restraining order filed by Corgan, which stated that TNA is “insolvent” and cannot pay its debts.
The restraining order also denies TNA and Impact Ventures, LLC, from creating or agreeing to any new deal or sale until Corgan also agrees to the terms, or the restraining order is removed. The restraining order applies to the sale of the company and any of its assets, as well as the ability to sign new talent or renew existing contracts.
PWInsider later revealed unsealed documents that included the response from Carter and Impact Ventures to Corgan's claim of insolvency: “Under Tennessee law, an entity is insolvent only if the sum of the debtor’s debts is greater than all of the debtor’s assets, at a fair valuation. Impact Ventures’ assets are of greater value than its debt.”
Carter previously denied that Corgan informed her of a default on Sept. 29. She also has objected to the request for all documents related to Impact Ventures being insolvent or unable to pay all of its debts in full, as well as all documents sent to or received from WWE or its representatives, and all documents sent to or received from “any third party” regarding that party’s potential acquisition of Impact Ventures LLC since January 1 of this year. Carter's response claims the document requests are too broad and not relevant.
Corgan's lawsuit includes a claim that his agreement with Carter and Impact Ventures gives him the authority to remove managers from TNA's parent company.
As for Corgan's originally filed suit against TNA, Impact Ventures, Dixie Carter, her husband Serg Salinas and Dean Broadhead, PWInsider broke the news that the restraining order will be unsealed this coming Tuesday, Oct. 25, at 4 p.m. ET, when it becomes public record. Corgan's attorneys intend to file a redacted version of the lawsuit to prevent certain “sensitive” materials,from being made public. That includes specific financial information, which will remain sealed.
TNA faces multiple lawsuits over unpaid debts, as well as a lien issued by the state of Tennessee for unpaid tax. The promotion also still owes Bruce Prichard money, according to comments Prichard made on the latest episode of his Something To Wrestle With podcast.
Prichard said that TNA took money Prichard owed the IRS as a garnish of his wages, and kept those funds instead: “You know, they did something that was really bad. I had some financial issues, and they were supposed to pay to the government, and so on and so forth, and they didn’t do it. … Then the government came after me for [not] paying them.”
Prichard, who later noted he owed about $10,000 in garnishments, said the government received the money after he showed prove of where the garnishment went.
“I never heard the end of it, other than the government was satisfied. And…it was just those kind of little petty things that didn’t have to happen, that made you kind of feel dirty at the end.”
The next hearing in Corgan's case against TNA is scheduled for this coming Wednesday, Oct. 26.