TNA Lawsuit: New Documents Revealed, Company "Not Insolvent"

Further light has been shed on the long-running, highly unedifying court-battle between TNA and heir-apparent Billy Corgan following Nashville Chancery Court's unsealing of several key legal documents from the case. The files, unveiled by Chancellor Ellen Hobbes Lyle this Friday, comprise the bulk of the trial's information, with only the initial complaint and details of Corgan's motion for a restraining order against the company still to go public.

Here's what we learned:

1) Corgan's restraining order itself. The court accepted Corgan's bid for a temporary restraining order on the basis that any future decisions by TNA without his consent will cause "immediate and irreparable injury, loss, or harm". In other words, TNA are prohibited from selling the tape library, the company, or any other relevant assets since the court expects Corgan's litigation to continue. As a result, this rules WWE and The Fight Network out of the running for the time being.

2) Corgan's motion to compel discovery. Exactly as it sounds, these documents detail TNA's answers to court-ordered questions of Corgan's behest. The key sticking point in the case up to now has been Corgan's claims of TNA's insolvency, which both Dixie Carter and Impact Ventures denied. Based on the terms of TNA and Corgan's apparent Pledge Agreement, should the company be insolvent, all control would immediately transfer to the defendant. Essentially, in denying insolvency, the company is preventing a Corgan takeover. Both Carter and Impact Ventures made the same set of statements, to the effect that "'insolvent' is not defined by in the Pledge Agreement", and that therefore the "plaintiff's purported exercise of governance rights is invalid."

According to Tennesse State law, insolvency occurs when the value of a company's debts surpasses the value of their assets. Whilst we're hesitant to accuse either Carter or Impact Ventures of perjury, it's a claim that seemingly doesn't add up, no matter which way you look at the figures. The company's key salable asset - the tape library - was valued at just $1 million by WWE, whilst debts are believed to be in the region of $4 million.

Ultimately, it seems Carter and Impact Ventures are aiming to resolve the case by essentially refunding Corgan through rebuying his stock. Presumably, further legal action would be required to place a gagging order on Corgan in order to avoid further embarrassment

With Hallowe'en just around the corner, expect more pumpkins to be smashed before this farcical affair is brought to a close.