Billy Corgan’s Lawsuit Reveals He Saved TNA From Being Foreclosed on by Aroluxe

The narrative of exactly what’s going on with TNA became a lot more clear on Tuesday, thanks to Billy Corgan’s complaint in his lawsuit against the company being unsealed (Thanks to Ryan Satin of Pro Wrestling Sheet for sending the documents along). Among other things, it reveals that when Billy Corgan signed documents in August giving him control of the company if it became insolvent, there was a very good reason he got Dixie Carter to give up so much:

If he hadn’t injected more cash into the company, Aroluxe Media had the right to foreclose on the company because TNA hadn’t paid off its loans to them, either. From the complaint (emphasis ours; note that “plaintiff” = Corgan and “Mrs. Salinas” = Dixie Carter-Salinas):

On or about August 11, 2016, Impact Ventures again needed funds to continue to operate and to avoid immediate foreclosure or all of its assets by Aroluxe. Specifically, the company required funds to pay Aroluxe so that Aroluxe would proceed with its production of TNA Impact Wrestling episodes upcoming in August. In addition, as ofAugust 6,2016, Aroluxe’s agreement to forbear on exisi ing defaults under the Vendor Financing and Security Agreement expired by its terms, thereby allowing Aroluxe to foreclose on the company at any time.

That takes us to what we already deduced last week, that Dixie Carter pledged her majority interest in TNA (Corgan believes that Dixie has 92.5% of the company, with Aroluxe holding 5% and the companies related to The Fight Network holding 2.5%) as collateral to Corgan, and he could collect if/when TNA became insolvent:

Impact Ventures and Mrs. Salinas also entered into an equity pledge agreement with plaintiff whereby Mrs. Salinas pledged 100% of her equity interest in Impact Ventures to plaintiff as security for Impact Ventures’ performance of its obligations under the Second Amended Corgan Loan Agreement and August 2016 Corgan Note (“Salinas Pledge Agreement”).

Other noteworthy information in the complaint and attached exhibits:

• Corgan outright says that Anthem Sports and Entertainment (Fight Network parent company) and MCC Acquisitions are one in the same, which was suspected because they share an address but not confirmed until now.
• TNA needing to go to MCC/Anthem during the last week of September is what Corgan is asserting is the insolvency/event of TNA defaulting under their agreement. TNA didn’t reply to any communications where he asserted his right to take over the company.
• No reference is made to the other lawsuit filed against TNA for non payment that week, which means it’s either a coincidence or that creditors following wrestling news decided to get their debts on the record.
• “Mr. Salinas” (unclear if a typo for Dixie or a reference to her husband, Serg) told the roster at the post-Bound For Glory meeting that TNA was negotiating with WWE to sell the promotion’s video library even though both she and Dean Broadhead, TNA’s Chief Financial Officer, had denied to Corgan that the rumors were true.
• “This recent conduct is consistent with the way that Mrs. Salinas and the other managers have dealt with plaintiff since the inception of his involvement with Impact Ventures.” When you consider that Corgan’s investment/loan/whatever you want to call it was not the beginning of his interactions with TNA, that’s a very interesting statement. If he was that distrustful of Carter and Broadhead, why was he so willing to front TNA money?

There will be a hearing tomorrow (Wednesday) to determine if Corgan’s temporary restraining order against TNA (keeping Carter from selling more stakes in the company, or selling the video library, or making any other business moves) will be converted to an injunction. That the judge granted the restraining order is a good sign for Corgan because it shows a strong belief that he will prevail at trial.