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TNA says Billy Corgan is a ‘predatory lender’; Decision coming in lawsuit on Monday, Oct. 31

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Both sides presented their cases today (Oct. 26) in the lawsuit Billy Corgan filed against Impact Ventures, LLC.

We’ve discussed Corgan’s side several times over the past several days. While details were presented as to when his three “investments” in TNA this year occurred, and both sides debated the terms of those deals, the core of his argument remains that the loan he made to Dixie Carter & company in August included an agreement which allows him to take over Carter’s stake and management rights if Impact’s debts outweigh the value of its assets.

Corgan’s lawyers told the judge why they already think that’s the situation, including offering that wrestlers are not being paid as evidence. Impact’s lawyers countered, including an argument that Billy would not be interested in owning the company if it really is the mess he claims it is - and saying he offered to buy the company recently and only pursued his current legal strategy when that deal fell through.

The TNA legal team worked hard to paint the Smashing Pumpkins frontman as a “predatory lender”. They say Corgan is trying to force Impact Ventures to default on their loans so he can take over the 92.5% of the company Dixie owns without having to pay fair market value for it.

Anthem (the parent company of Fight Network, which owns 2% of Impact Ventures and holds the rights to the tape library) again offered to repay the money he loaned TNA in court today. Impact’s lawyers say the entire agreement whereby Corgan would take over Carter’s management rights is illegal under Tennessee state law.

In the scenario where the case is dismissed or ruled in the defendants’ favor, Anthem could pay Corgan back (the amount is technically still sealed, but his lawyer let slip a figure of 1.8 million while presenting their side), it could mean Billy leaves the picture and business continues on with Aroluxe’s Jason Brown running the company while Dixie negotiates a sale of her stake on her - and her remaining creditors - terms.

The judge, Chancellor Ellen Hobbs Lyle, informed the parties her decision would come on Monday.

Halloween seems like a fitting day for this company’s future to be decided.

This post was built using the reporting of The Tennessean and journalist Nate Rua, who covered today’s proceedings live.